Nige­ria man­u­fac­tur­ing PMI rises in Novem­ber

Business a.m. - - NEWS - Moses Obajemu

trans­ac­tions to­talling N1.10 tril­lion ($3.6 bil­lion) in 2017 com­pared to the fig­ures for the much smaller economies of Ghana and Kenya last year, which were $36 bil­lion and $45 bil­lion re­spec­tively.

“High trans­ac­tion costs are a dis­in­cen­tive in Nige­ria gen­er­ally but the reg­u­la­tory model is also a bar­rier: it is bank-led whereas that in both Ghana and Kenya is tel­coled. Changes are afoot how­ever, and the CBN has is­sued a cir­cu­lar on the reg­u­la­tions for new pay­ment ser­vice banks,” the re­port fur­ther said.

It notes that two mo­bile op­er­a­tors have in­di­cated that they plan to set up sub­sidiary com­pa­nies to ap­ply for the nec­es­sary li­censes next year. It de­scribed this de­vel­op­ment as pos­i­tive con­sid­er­ing the fact that the very rapid ex­pan­sion of the in­dus­try in Kenya has spawned a num­ber of ini­tia­tives with a strong de­vel­op­men­tal an­gle such as the pro­vi­sion of low-cost so­lar power to off-grid com­mu­ni­ties in ru­ral ar­eas.

“This last area has be­come the dar­ling of the pri­vate eq­uity in­dus­try, DFIs and also phi­lan­thropists. One in­no­va­tion was the sale in May 2017 of a gov­ern­ment bond re­stricted to sub­scrip­tion by mo­bile, the first in Africa and, we think, glob­ally,” they said.

NIGE­RIA’S MANU FAC­TUR­ING sec­tor recorded yet an­other ex­pan­sion in Novem­ber 2018 as the the man­u­fac­tur­ing PMI in the month stood at 57.9 in­dex points, in­di­cat­ing ex­pan­sion in the man­u­fac­tur­ing sec­tor for the twen­ti­eth con­sec­u­tive month. The in­dex grew at a faster rate when com­pared to the in­dex in the pre­vi­ous month.

Ac­cord­ing to a price in­dex sur­vey con­ducted by the Sta­tis­tics de­part­ment of the Cen­tral Bank of Nige­ria, all the 14 sub­sec­tors sur­veyed re­ported growth in the re­view month in the fol­low­ing or­der: elec­tri­cal equip­ment; fur­ni­ture & re­lated prod­ucts; ce­ment; food, bev­er­age & to­bacco prod­ucts; pa­per prod­ucts; trans­porta­tion equip­ment; plas­tics & rub­ber prod­ucts; chem­i­cal & phar­ma­ceu­ti­cal prod­ucts; print­ing & re­lated sup­port ac­tiv­i­ties; petroleum & coal prod­ucts; fab­ri­cated metal prod­ucts; non-metal­lic minTHERE eral prod­ucts; tex­tile, ap­parel, leather & footwear; and pri­mary metal.

At 59.9 points, the pro­duc­tion level in­dex for the man­u­fac­tur­ing sec­tor grew for the twenty-first con­sec­u­tive month in Novem­ber 2018. The in­dex in­di­cated a faster growth in the cur­rent month, when com­pared to its level in the pre­ced­ing month. Thir­teen of the 14 man­u­fac­tur­ing sub­sec­tors recorded in­crease in pro­duc­tion level, while 1 re­mained un­changed . At 58.1 points, the new or­ders in­dex grew for the twen­ti­eth con­sec­u­tive month, in­di­cat­ing in­crease in new or­ders in Novem­ber 2018. Eleven sub­sec­tors re­ported growth, 1 re­mained un­changed, while 2 con­tracted in the re­view month.

The man­u­fac­tur­ing sup­plier de­liv­ery time in­dex stood at 56.9 points in Novem­ber 2018, in­di­cat­ing faster sup­plier de­liv­ery time for the eigh­teenth con­sec­u­tive month. Twelve sub­sec­tors recorded im­proved sup­pli­ers’ de­liv­ery time, while 1 re­mained un­changed de­liv­ery times and 1 recorded wors­en­ing de­liv­ery time.

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