Friday, Jan 27, 2023
logo
Update At 13:00    USD/EUR 0,92  ↑+0.0012        USD/JPY 129,86  ↓-0.29        USD/KRW 1.232,92  ↑+1.1        EUR/JPY 141,20  ↓-0.526        Crude Oil 87,80  ↑+0.33        Asia Dow 3.546,18  ↑+2.39        TSE 1.875,50  ↑+21        Japan: Nikkei 225 27.367,60  ↑+4.85        S. Korea: KOSPI 2.491,61  ↑+22.96        China: Shanghai Composite 3.264,81  ↑+24.534        Hong Kong: Hang Seng 22.543,95  ↓-22.83        Singapore: Straits Times 3,44  ↑+0.001        DJIA 22,09  ↑+0.06        Nasdaq Composite 11.512,41  ↑+199.056        S&P 500 4.060,43  ↑+44.21        Russell 2000 1.903,06  ↑+12.7451        Stoxx Euro 50 4.173,98  ↑+25.87        Stoxx Europe 600 453,98  ↑+1.91        Germany: DAX 15.132,85  ↑+51.21        UK: FTSE 100 7.761,11  ↑+16.24        Spain: IBEX 35 9.035,60  ↑+78.1        France: CAC 40 7.095,99  ↑+52.11        

Industrial sectors help diversify economy

Article - December 17, 2012
It’s no secret that Nigeria’s wealth stems mainly from its vast oil and gas resources, yet the country is making strides in other sectors as well, including mining and manufacturing
DR OLUSEGUN AGANGA, MINISTER OF TRADE AND INVESTMENT
Economic growth, which stood at 6.5 per cent during the third quarter this year, was driven in large part by oil but by also activity in the building and construction, cement, hotel and restaurant, and electricity sectors, according to Nigeria’s National Bureau of Statistics.

Indeed, non-oil growth expanded 7.6 per cent in Q3 2012. In 2011, however, the non-oil sector saw higher growth of 8.8 per cent; the drop this year is due to the flooding and insecurity in northern states which hit the agricultural sector fairly hard. Nevertheless, the fact that the non-oil growth outpaced overall economic growth is a positive sign that Nigeria’s diversification efforts are paying off.

Manufacturing is an important contender in the diversification strategy, and although its contribution to GDP stands at less than 5 per cent, it is growing nearly 10 per cent per year. And with such a wealth of natural resources, it stands to reason that Nigeria could become a major industrialised nation, capable of serving its own domestic demand as well as that of its neighbours.

Nigeria’s power
industry gets a boost from various new
industrial parks
According to a report by the World Trade Organisation, the country must update its equipment, lower the cost of inputs and improve its transport infrastructure, the energy and water supply (the cost of energy alone can chalk up nearly 70 per cent of a manufacturer’s expenditure) and access to financing, if it is to fulfil its industrial potential.

The strongest subsectors in manufacturing are food and beverage, which comprise 22 per cent of the sector, cement, household chemicals and textiles.

In the non-manufacturing sectors, mining and construction are both areas that, after being long dormant, have revived and are enjoying strong growth.

Until 1999, mining for minerals had been all but forgotten, overshadowed by the discovery of petroleum. Thirteen years ago, the government decided to give mining new impetus by conceding generous incentives in order to attract investors and exploration companies. The effect was almost immediate: from GDP contribution of just 0.5 per cent before 1999, the sector grew more than 7 per cent by 2010, according to the WTO. A year later, it expanded by 11.48 per cent.

Nigeria’s most mined and marketed minerals today are coal, limestone, columbite, marble and cassiterite.

As Africa’s second largest economy, it is rather surprising that the construction sector is not larger than it is. According to the WTO, its contribution to GDP is only around 2 per cent (up from 1.69 per cent between 2005 and 2009), despite a housing and infrastructure deficit. Yet although construction may be slow, Nigeria’s cement industry is strong, and local cement producers control approximately 97 per cent of the domestic market.

Nonetheless, per capita consumption in Nigeria is just 106 kilogrammes (compare with Senegal, where the per capita figure is 190 kilogrammes).

Nigeria’s industrial output is receiving a boost, thanks to the development of several new industrial parks.

In Lagos State, the Imota Agro-Industrial Park and the Ilara-Igbonla Agro-Industrial Park are two projects that got under way this year, as are three new enterprise zones which will accommodate more than 500 micro and small enterprises. In Delta State, a 1,150-acre virgin plot of land – which in this region translates into lush forest – has been designated for the construction of Warri Industrial Park, which is set to be a world-class business park.

These will complement the already existing aluminium smelters and oil refineries in the south-east of the country, a liquefied natural gas facility in Bonny, and south-central Nigeria’s integrated steel complex.

COMPANY DATABASESee all Database >

ABLIC Inc.

Manufacturing, Japan

Atago Ltd.

Manufacturing, Japan

UNIFLOW CO., LTD.

Manufacturing, Japan

LEADER DATABASESee all Database >

Nobumasa Ishiai

President and CEO, ABLIC Inc. Senior Managing Executive Officer, MinebeaMitsumi Inc. (Parent Company of ABLIC)
ABLIC Inc.

HIROSHI KOYAMA

MANAGING DIRECTOR
JUJO CHEMICAL CO., LTD.

Yoshihiko Hirano

President & CEO
Hirano Steel Co.,Ltd.

Yorifusa Wakabayashi

President and Representative Director, Chief Executive Officer
DAIO PAPER CORPORATION

  0 COMMENTS