The manufacturing sector’s contribution to the GDP has decreased to N1.49 trillion.

In the second quarter ended June 2023 (Q2’230), the manufacturing sector’s contribution to Nigeria’s GDP (in real terms) fell to N1.5 trillion.

This marks a 17.24 percent decrease from the N1.8 trillion contribution recorded in the first quarter of the year (Q1’23).

According to the Nigerian Bureau of Statistics, the country’s GDP expanded by 2.51% in Q2’23, compared to 2.31% in Q1’23.

The expansion is the 11th consecutive quarter of economic growth, however it is lower than the 3.54% reported in Q1’22.

The Bureau also announced that real GDP was N17.72 trillion in Q2’23, a 0.17 percent reduction from N17.75 trillion in Q1’23.

In percentage terms, the manufacturing sector’s contribution to real GDP declined to 8.40 percent from 10.13 percent in Q1’23.

Meanwhile, real GDP growth in the manufacturing sector was 2.20 percent in the second quarter of 2023, 0.81 percentage point higher than the previous quarter’s growth rate of 1.61 percent.

Dr. Muda Yusuf, chief executive of the Centre for Promotion of Private Enterprise, CPPE, commented on this event, saying, “The Nigerian economy is still undergoing corrective reforms to remove some fundamental distortions and return the economy to the path of recovery and growth.”

However, putting the reforms into action is a difficult process.

“The trade-offs are profound, and the social impact has been devastating.”Given the imminence of the reforms, their implementation necessitates a careful balancing act and strategic sequencing to guarantee an inclusive economic transition.

The negative consequences of the measures were disproportionately greater than projected. However, once current imbalances in the economy are removed, the economy is likely to recover in the medium to long term.”