Emmanuel Ochayi
The manufacturing sector has seen an increase in capital inflow during the first half of 2023, surging to $861.16 million, marking 88.16% rise when compared to the $457.67 million recorded during the same period in 2022, according to data from the National Bureau of Statistics (NBS).
Speaking on this development to The Guardian, Dr. Chinyere Almona, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI) pointed out that much of the capital imported into the manufacturing sector in H1 2023 has been in the form of loans and bonds.
Join our WhatsApp ChannelThis mirrors the challenges faced by manufacturers, who are striving to meet short-term obligations and cope with a slowdown in business activities.
Dr. Almona provided examples, stating, “For instance, Dangote Group and Tolaram successfully raised N300 billion in bonds and $38 million, respectively.”
She attributed this substantial increase to a combination of factors, including a relatively low base of capital importation in the previous year, and the positive response from investors to two crucial reforms: the removal of fuel subsidies and the harmonization of exchange rates in the early months of the new administration.
Dr. Almona anticipates that the increased capital inflow in H1 2023 will have a significant impact on the manufacturing sector, particularly benefiting companies that are working to overcome current challenges, fulfill short-term financial commitments, and address declining consumer demand.
Despite the challenging operating environment, the sector has displayed resilience, posting growth rates of 1.61% and 2.20% in the first and second quarters of 2023, respectively.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
