No less than 3,567 jobs were lost in the manufacturing sector in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).
According to the association, manufacturing employment fell to 6,428 in the first half of 2023, resulting in a 32.8% decrease in employment generation capacity when compared to the 9,559 jobs created in the first half of 2022.
Gistlover learned that MAN, which made this announcement on Tuesday during its half-yearly review of the economy, claimed that the naira crunch-related unfavorable business environment, caused policies, and decline in the number of jobs created in the sector during the period were to blame.
According to the MAN report, a total of 3,567 jobs were lost in the first half of 2023, which is 1,855 more than the 1,709 jobs lost in the same period of 2022 and 850 more than the 27,08 jobs lost in the second half of 2022. “
Additionally, the association reported that during the first half of 2023, the inventory of finished goods in the manufacturing sector increased to N271.9 billion from N187 billion in the corresponding period of 2022.
It was revealed that there had been a significant increase of N84.88 billion, or 45.4%, during that time. When compared to the inventory value of N283.6 billion recorded in the second half of 2022, it also showed a N11.64 billion or 4.1 percent decline.
The association also noted that, toward the end of the first half, the removal of subsidies and the policy of unifying exchange rates had left the economy on the verge of uncertainty and had had a knock-on effect that further damaged investor confidence.
According to the MAN report, “This increase in inventory can be attributed to a weaker purchasing power of the consumers, brought about by diminishing real household income as a result of the continuing escalation of inflationary pressures, compounded by the scarcity of naira in the first quarter of the year and the aftermath of the subsidy removal.
“As a result, companies and foreign investors are becoming more cautious about investing money, impeding economic growth and recovery prospects.
“The result of these combined effects is a higher inflationary pressure, which drives up production costs, lowers consumer purchasing power, and has a greater impact on manufacturers “
