Nigeria’s manufacturing sector expanded in November. According to Central Bank of Nigeria’s report, Purchasing Managers Index (PMI) rose to 50.2 points in November from 49.4 points recorded in October.
PMI readings above 50 indicate expansion, while those below that signal contraction. PMI readings are sequential and indicate month-on-month expansion or contraction.
Arise Business Analyst Chika Mbonu while speaking on the Global Business Report said this PMI reading indicates the overall Nigerian economy will likely expand better than expected in the last quarter of this year.
He further said the Nigerian manufacturing sector is facing some challenges which is inadequate supply of power, poor access to credit, and gridlocks on the ports which adds to the cost of doing business for the manufacturers.
If some of these issues are addressed the manufacturing sector will expand even further, he says.