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Manufacturing Index shows 11 ‘performing’ businesses in Nigeria

The Central Bank of Nigeria [@cenbank] has released the latest Purchasing Managers’ Index (PMI) for July 2019 and it shows that Nigeria’s manufacturing sector keeps expanding with 11 thriving manufacturing businesses.



Manufacturing Index shows 11 'performing' businesses in Nigeria

The Central Bank of Nigeria (CBN) has released the latest Purchasing Managers’ Index (PMI).

The report which is for July 2019 showed that Nigeria’s manufacturing sector has continued to expand.

According to the CBN’s report, 11 businesses in the manufacturing sector recorded improved growth in July.

Basic Highlights: The apex bank’s report tracked the activities in both the manufacturing and services sector. The index tracked new orders, business activity, production levels, supply delivery time, employment and supply delivery time.

Manufacturing PMI stood at 57.6 index points in July, from 57.4 points index recorded in the previous month. This means Nigeria’s manufacturing sector grew for the 28th consecutive months in July 2019. Of the 14 sub-sectors surveyed, 13 reported growth in the reviewed month in the following order:

  • petroleum & coal products
  • transportation equipment
  • cement
  • printing & related support activities
  • paper products; food, beverage & tobacco products
  • furniture & related products
  • fabricated metal products
  • nonmetallic mineral products
  • plastics & rubber products
  • primary metal
  • chemical & pharmaceutical products and electrical equipment.

Meanwhile, the manufacturing production level, new orders, supplier delivery time, employment level and raw material inventories all grew at a faster rate in the month.

[READ: Foreign investors’ inflows outpace outflows as election-fever wears off]

The non-manufacturing PMI equally expanded at a faster rate in July. The composite PMI for the non-manufacturing sector rose to 58.7 points as against 58.6 points recorded in the previous month. All 17 surveyed sub-sectors recorded growth in the following order:

  • management of companies
  • arts, entertainment & recreation
  • finance & insurance
  • repair, maintenance/washing of motor vehicles
  • construction; real estate rental & leasing
  • agriculture
  • health care & social assistance
  • information & communication
  • accommodation & food services
  • wholesale/retail trade
  • water supply, sewage & waste management
  • transportation & warehousing
  • electricity, gas, steam & air conditioning supply
  • professional, scientific, & technical services
  • educational services and utilities

Top thriving businesses: One of the key indicators in determining whether a business is witnessing decline or not is the inventory. Companies make money when they sell products and services, and for those whose inventories pile up, it is a sign that sales will decline.

The rise in orders is evidently a sure sign that businesses are attracting the right customers and consequently recording growth.

Hence, the CBN’s report showed that 11 businesses in the manufacturing sector recorded an increase in new orders, which implied improved business transactions. Below are the businesses listed by the CBN.

Businesses thriving in Nigeria’s Manufacturing Sector

  1. Cement production
  2. Chemical & pharmaceutical products
  3. Electrical equipment
  4. Fabricated metal products
  5. Food, beverage & tobacco products
  6. Furniture & related products
  7. Nonmetallic mineral products
  8. Plastics & rubber products
  9. Primary metal
  10. Printing & related support activities
  11. Textile, apparel, leather & footwear

Businesses declining or with no change

  1. Petroleum & coal products
  2. Paper products
  3. Textile, apparel, leather & footwear

What the rising PMI means: The PMI for the manufacturing sector has continued to maintain a rise for over two years, and this means the sector has maintained its expansionary trend. This may translate to growing the economy.

  • Actually PMI has formed an extremely important indicator for investors looking to form an opinion on economic growth.
  • Meanwhile, it should be noted that rising PMI does not necessarily mean positive growth in the manufacturing sector.
  • For instance, in the third quarter of 2018, despite the rise in PMI, data showed the sector recorded a negative growth rate of 0.11%. Also, the sector grew very slowly in Q1 2019.
  • The slow growth recorded in the sector in Q1 2019 may be traceable to low investment.
  • A data released by the National Bureau of Statistics showed that foreign investors’ confidence dropped due to the general election, thereby capital importation into manufacturing dropped by 40% ($252 million).

[READ FURTHER: Foreign investors are avoiding these sectors like a flea]

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

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Tech News

Twitter CEO auctions his first-ever tweet on Twitter, bidding at $2.5 million

Jack Dorsey is auctioning his first-ever tweet on a website that sells tweets as non-fungible tokens.



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Twitter CEO, Jack Dorsey is auctioning his first-ever tweet on Twitter “just setting up my twttr” on a website that sells tweets as non-fungible tokens (NFTs).

The tweet was listed for sale on ‘Valuables by Cent’ – a tweets marketplace that was launched three months ago. The tweet was first made in March 2006

The tweet received offers as high as $88,888.88 within minutes of Jack tweeting a link to the listing on” Valuables by Cent” on Friday.

Currently, bidding has reached $2.5 million (€2.1 million) indicating the potential in selling virtual objects that have been authenticated through blockchain technology.

The highest bid for the tweet — $2.5 million — came from Bridge Oracle CEO Sina Estavi. It topped cryptocurrency pioneer, Justin Sun’s $2 million bid.

The final buyer of the tweet will receive a certificate, digitally signed and verified by Jack Dorsey, as well as the metadata of the original tweet. The data will include information such as the time the tweet was posted and its text contents. Most of this information, however, is already publicly available.

According to Valuables by Cent’s terms, 95% of a tweet’s sale will go to the original creator while the remainder will go to the website.

What you should know

  • NFTs is a unique digital certificate that states who owns a photo, video, or other forms of online media.
  • Dorsey’s 15-year-old tweet is one of the most famous tweets ever on the platform.
  • Bidding had reached $2.5 million (€2.1 million) on Saturday, indicating the potential in selling virtual objects that have been authenticated through blockchain technology.
  • More people are currently bidding their tweets on the platform.

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Stock Market

Bamboo’s current rate for buying U.S Stocks weakens to N492/$1

Bamboo is currently offering its users a premium of more than 20% compared to the official exchange rate.



The fast-rising Nigerian stock broking application, Bamboo, is currently offering an exchange rate of N492 to the dollar.

About two weeks ago,  the Nigerian stock trading app offered an exchange rate of about N484 to $1.

The green-colored trading app known for allowing local-based Nigerians to invest in stocks listed on the world’s biggest stock market (New York Stock Exchange and NASDAQ) is currently offering its users a premium of more than 20% compared to the official exchange rate set by the Nigerian apex bank.

READ: Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban

That being said, Nairametrics’s most recent research observed Chaka. ng offers the lowest exchange rate charge of N480 to 1$, other Nigerian-based stock trading apps that include Trove and Risevest currently offer their clients N491.68 and N486 to $1 respectively.

In addition, other leading fintech platforms reviewed by Nairametrics also presently offer exuberant rates as high as about N519 to a dollar, thereby adding more transaction costs on a significant number of Nigerians hoping to trade such financial assets.

A growing number of Nigerians are currently increasing their exposure to the U.S stock market taking to the current bearish trend that is being witnessed in the Nigerian Equity market and growing urge in hedging against the weakening local currency.

Consequently, a lot of Nigerians are flocking the New York Stock Exchange (NYSE) on the account it has about 2,800 companies listed, while the NASDAQ has about 3,300 stocks listed. This gives Nigerian investors numerous options where they can invest their money. It is also why the US economy attracts billions of dollars in portfolio investments annually.

READ: Many Nigerians are trooping into foreign stock markets

Bamboo is an investment platform that gives Africans real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computer.

In partnership with US-based Drive Wealth LLC, Bamboo provides seamless, secure access to US and Nigerian securities.

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