How Ogun Can Remain Nigeria’s Industrial Hub, By Manufacturers

A SABMiller employee is seen working on the Hero lager bottling production line in Nigeria in this undated handout photo released to the media on Wednesday, May 22, 2013. Shares of London-based SABMiller have rallied about 60 percent since November 2011, when it launched its first cassava-based beer, Impala, in Mozambique. Source: SABMiller Plc via Bloomberg EDITOR'S NOTE: NO SALES. EDITORIAL USE ONLY.

Real sector production, employment slows in September
To retain its reputation as the country’s industrial hub, after displacing Lagos State, local manufacturers have urged the Ogun State government to craft an industrial policy that deliberately establishes a strategic nexus between its infrastructure development and the attraction and expansion of industries in the state.
According to the local producers, there is a need for the state to create the right environment for industries to thrive, in order to improve chances of collecting taxes and elicit the much-needed social corporate responsibility.

To this end, the Manufacturers Association of Nigeria (MAN) urged the State to put a permanent halt to the Water Abstraction/Borehole charges; revisit the issues surrounding the Unified Truck Drivers charges; refocus attention on the reconstruction and rehabilitation of road and other infrastructure in the industrial areas and remove the ambiguity amongst the State regulatory agencies.

MAN President, Masur Ahmed, while speaking at the yearly general meeting of the Ogun Branch of the association, yesterday, said the State government should establish a more effective mechanism for consultation with MAN in order to ensure the sustenance of existing manufacturing companies and the establishment of new ones.

Ogun State Governor, Dapo Abiodun reiterated the State’s commitment to providing good governance that is participatory, inclusive, responsive, effective and efficient.“Our geographical location as the gateway to the country and the proximity to Lagos, the fifth largest economy in Africa, put us in a vantage position for this aspiration. As Ogun State continued to experience influx of companies, we have deliberately considered the interest of our investors the integral part of our master-plan.

“Within the first 100 days of our Administration in office, we have put in place measures as the foundation to drive key policies in our Public-Private Sector Partnership strategy, and we are already recording positive results in that regards”, he added.

For local producers, Ahmed said the body will focus especially on promotion of value-chain development as a means of achieving greater manufacturing sector contribution to GDP, job creation and prosperity for the businesses of our members.“On our own part, we should ensure that we comply with the regulations and laws of the land. Should we find any untoward or inhibitive regulations or laws, the Association will lead the process advocating for a change in order to ensure that our businesses are not encumbered”, he added.

Meanwhile, production and employment levels and raw materials inventories grew at a slower rate, while new orders and supplier delivery time grew at a faster rate in September 2019.The Central Bank of Nigeria disclosed this in its Purchasing Managers’ Index survey report for the month of September.

The Manufacturing PMI in the month of September stood at 57.7 index points, indicating expansion in the manufacturing sector for the 30th consecutive month.The index grew at a slower rate when compared to the index in August.Thirteen of the 14 surveyed subsectors reported growth in the review month in the following order: cement; petroleum and coal products; food, beverage and tobacco products; transportation equipment; printing and related support activities.

Others were chemical and pharmaceutical products; furniture and related products; fabricated metal products, non-metallic mineral products; electrical equipment; textile, apparel, leather and footwear; plastics and rubber products; and primary metal.

The paper products subsector recorded decline in the review period. At 58.5 points, the production level index for the manufacturing sector grew for the 31st consecutive month in September 2019.

The index indicated a slower growth in the current month, when compared to its level in August 2019.Eleven of the 14 manufacturing subsectors recorded increased production level, one remained unchanged, while two recorded decline.

At 57.2 points, the new orders index grew for the 30th consecutive month, indicating increase in new orders in September 2019. The index grew at a faster rate, when compared to its level in August 2019.Nine subsectors reported growth, one remained unchanged, while four contracted in the review month.

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