RECESSION AND THE MANUFACTURING SECTOR

By John Eunice -081
     Economic recession and the unfavourable business climate are taking their toll on the manufacturing sector, with 196 manufacturing companies in the last two years.
      In 2016,the Manufacturers Association of Nigeria (MAN) had lamented that as a result of foreign exchange restrictions and the ban on some imported raw materials, over 45 firms shut down operations while more than 220 Small and Medium Enterprises (SMEs) closed shop completely, erasing over two million jobs and inducing huge financial losses estimated at 62.184 billion.
      Man said that the share of energy cost to total cost of production in the sector was estimated at 36 percent,one of the highest in the world.A survey by the association also claimed that member companies put their annual expenditure on alternative energy source at #129.95 billion last year,up from #58.82 billon in 2015.