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CBN’s PMI reveals Nigeria’s Manufacturing sector slowed down in June

The latest Purchasing Managers’ Index (PMI) released by the Central Bank of Nigeria (CBN) shows that Nigeria’s manufacturing sector slowed down in June 2019.




The latest Purchasing Managers’ Index (PMI) released by the Central Bank of Nigeria (CBN) shows that Nigeria’s manufacturing sector slowed down in June 2019.

According to the CBN’s PMI report, the Manufacturing PMI stood at 57.4 index points in June 2019, down from 57.8 points index recorded in the previous month. Meanwhile, even though the PMI index grew at a slower rate of 57.4 index point in June, the manufacturing sector still managed to expand for the twenty-seventh consecutive month.

Manufacturing PMI: The Central Bank report revealed that out of the 14 subsectors surveyed, 12 reported growth in the review month in the following order:

  • Transportation equipment
  • Petroleum & coal products
  • Cement
  • Chemical & pharmaceutical products
  • Electrical equipment
  • Food, beverage & tobacco products
  • Printing & related support activities
  • Fabricated metal products
  • Paper products
  • Furniture & related products
  • Textile, apparel, leather & footwear and
  • Plastics & rubber products.

However, the nonmetallic mineral products and primary metal subsectors recorded declines in the review period.

Further analysis of the PMI shows that the production level index for the manufacturing sector grew for the twenty-eighth consecutive month in June 2019. The index indicated a faster growth in the current month when compared to its level in the month of May 2019.

  • New Orders for the review period recorded 55.9 points. This indicates growth for the twenty-seventh consecutive month.
  • Supplier Delivery Time index stood at 58.7 points in June 2019, indicating faster supplier delivery time.
  • Employment Level index for June 2019 stood at 57.5 points, indicating growth in employment level for the 25th consecutive months.
  • Raw material inventories index for the Manufacturing sector slowed down for the second consecutive months in June 2019.

Non-Manufacturing PMI: Just as the manufacturing sector slowed down, the non-manufacturing PMI equally indicated slower growth in June. The composite PMI for the non-manufacturing sector declined to 58.6 points as against 58.9 points recorded in the previous month. Meanwhile, Sixteen of the Seventeen surveyed subsectors
recorded growth.

  • Business Activity index ( 58.2 points from 59.2 points) grew for the twenty-sixth consecutive month, indicating slow expansion in nonmanufacturing business activity in June 2019.
  • New orders index grew faster at 59.2 points index as against 58.6 points, new orders index grew for the 27th consecutive month in June 2019. Sixteen of the 17
    surveyed subsectors recorded growth in new orders, while 1 declined in the
    review month.
  • The employment level Index for the non-manufacturing sector stood at 58.3 points, indicating growth in employment for the 26th consecutive month. Sixteen subsectors
    recorded growth in employment level, while 1 subsector declined in the review
  • Lastly, at 59.3 points, the non-manufacturing inventory index grew for the 25th consecutive months, indicating growth in inventories in the review period.

[READ THIS: Fifty important skills that will earn Nigerians Forex]

What the latest PMI means for the economy: PMI has become one of the most closely watched business surveys in the world, favoured by central banks such as the US Federal Reserve, European Central Bank, and Bank of England for providing the most accurate advance signals of changing economic growth and inflation.

Specifically, PMI is an extremely important indicator for international investors looking to form an opinion on economic growth. When it comes to predicting GDP growth, a higher than 42.0 PMI is considered to be the benchmark for economic expansion. However, a PMI below 42.0 could indicate that an economy is heading into a recession.

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Analysis of growth data released by the National Bureau of Statistics (NBS) shows that the manufacturing sector recorded a decline of about N77.92bn in output in the first quarter of 2019. Hence, the slow in PMI means the slow growth recorded in Nigeria’s manufacturing sector may be sustained in the second quarter of 2019.

READ FURTHER: Nigeria’s PMI remains positive for the 24th consecutive month

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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US Capitol complex temporarily shut down

The US Capitol complex was shut down temporarily on Monday as a precautionary measure after a small fire broke out nearby.



The US Capitol complex was shut down temporarily for about an hour on Monday as a precautionary measure after a small fire broke out nearby, highlighting the security concerns that are being raised days before the inauguration of President-elect Joe Biden.

The security concerns and the lockdown follows the January 6 attack on the US Capital by supporters of the outgoing US President, Donald Trump, after his encouragement and inciting comments, calling the Presidential election a fraud without any proof of evidence.

READ: President Trump says he won’t attend Joe Biden’s inauguration

Some of them even called for the death of the US Vice President, Mike Pence for presiding over the certification of Joe Biden’s November election victory.

While making the disclosure in a statement, the Capitol Police said that the lockdown has been lifted and the nearby fire contained.


The Acting Chief of the Capitol Police had said that the complex which comprises of the Capitol, its grounds and several buildings were shut down as a precautionary measure.

READ: US Supreme court dismisses Texas bid to overturn presidential election results

The US Secret Service in a tweet post on its official Twitter handle said, “Out of an abundance of caution the U.S. Capitol complex was temporarily shutdown. There is no threat to the public.’’

The city’s fire department in its tweet post said that firefighters put out a fire outside near the Capitol complex.

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The fire department said, “There were no injuries. This accounts for smoke that many have seen.”

READ: Huawei accuses the United States of hacking

What you should know

  • President-elect, Joe Biden is expected to be sworn in at the US Capitol on Wednesday amid an unprecedented cordon of security, with strict physical distancing measures in place due to threats of violent attacks in Washington and the rising cases of coronavirus infections.
  • Donald Trump, who is just fresh from a historic second impeachment from the congress had said he would not attend, although his deputy, Vice President Mike Pence, had given an indication that he would attend.

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Corporate Press Releases

Kinyungu Ventures Research calls for changes to cut-and-paste VC strategy in Africa

The Paper recommends investment structures and approaches tailored to African operating conditions.



East African venture advisory firm, Kinyungu Ventures has published a white paper Chasing Outliers: Why Context Matters for Early Stage Investing in Africa that has found that there continues to be a wide misalignment between traditional venture capital models and the African market. The team behind the report is now calling for a broadening of approaches to institutional investment on the continent. Speaking with 100 Pan-African founders, investors, and LPs across 15 African countries, the research suggests investors should prioritize investing structures and practices that reflect the realities of operating in Africa. This includes adopting more flexible investing structures with longer time horizons.

According to the paper, there are multiple mismatches between key characteristics of Silicon Valley VC and African markets, which influence how startups and funds maneuver as well as what results they expect and produce. Findings show that African markets are large, but also fragmented, and its consumers have limited purchasing power. Furthermore, consumers on the continent are difficult to acquire and retain, yet the sheer size of the African market also presents a real opportunity for profit once the environment is clearly understood. The paper’s key recommendations for funds include:

  • Adopting more focused investment strategies, such as investing in b2b companies or cross-subsidizing a portfolio with less risky, steady return assets.
  • Considering non-unicorn investing models geared at more resilient companies, with returns distributed more widely across the portfolio
  • Using flexible structures such as debt or PCVs to accommodate market-level changes, where feasible
  • Allowing a longer time horizon for returns, understanding that growth could be slow and difficult to achieve for many companies

Kinyungu Ventures catalyzes resilient businesses for local intergenerational prosperity. The East African-centric investor focuses on entrepreneurship in East Africa, startups, seed funding, debt financing, impact investing and angel investing.

Speaking on the launch of the white paper, Tony Chen, Managing Director of Kinyungu Ventures and co-publisher of the report says, “Capital in Africa is scarce and pursuing a “growth at all costs” strategy where capital pools are shallow presents huge risks for companies. We’ve also found that many great businesses don’t fit the typical VC profile, but have tremendous unfulfilled potential”.

Tayo Akinyemi, lead researcher and writer of the report added: “In our conversations with numerous investors and founders, it is clear that nuances in variables such as consumer behavior, cultural norms, and business practices impact startups significantly and being on the ground is crucial for success. While African markets aren’t always able to provide the outsized returns that Silicon Valley typically looks for in high-growth companies, a more focused strategy here could unlock real gems, as has been proven by some of the startup successes the continent has seen over the years.”


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Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.



Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

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