Binding constraints slowdown manufacturing activities in September — REPORT

By Yinka Kolawole

There was a marginal decline successful enlargement of the manufacturing assemblage successful September driven mostly by weakness successful cardinal sub-sectors of the ecosystem occasioned by binding constraints.

This was revealed successful the NESG-Stanbic IBTC Business Confidence Monitor (BCM) Index for the Manufacturing assemblage successful September 2025, which signaled that the assemblage recorded a slowdown but stayed successful the enlargement region. 

The BCM scale for the assemblage dropped to 102.5 points successful September from 106.2 points successful August 2025. 

BCM is simply a survey-based study which presents accusation connected the existent concern sentiment wrong the Nigerian system and gauges expectations astir wide economical activities successful the abbreviated term, anchored connected concern managers’ assessment.

It is facilitated by the Nigerian Economic Summit Group (NESG) successful relation with Stanbic IBTC Bank.

The study stated: “This marginal diminution was mostly driven by weakness successful cardinal sub-sectors specified arsenic Food, Beverage and Tobacco, Cement, Plastic and Rubber Products, Wood and Wood Products, Non-Metallic Products, and Pulp, Paper and Paper Products.

“Surveyed manufacturing firms reported persistent instability and unreliability of electricity, which severely disrupts accumulation schedules and reduces the quality to conscionable lawsuit demand. 

“Moreover, the precocious outgo of powering generators with diesel erodes nett margins, portion predominant outages unit businesses to chopped accumulation and dilatory operations significantly.”

The BCM survey study further said: “At the sub-sectoral level, Food, Beverage and Tobacco, Cement, Plastic and Rubber Products, Wood and Wood Products, Non-Metallic Products, and Pulp, Paper and Paper Products each posted declines, slipping into contraction successful September. 

“Given that these sub-sectors collectively relationship for implicit 75 percent of Nigeria’s manufacturing output, their weaker show successful the period mostly explains the sector’s slowed momentum.

“Importantly, manufacturing businesses proceed to conflict with precocious taxation, constricted finance, earthy worldly shortages, inadequate electricity, precocious rents, insecurity, anemic infrastructure, and rising costs, each of which collectively undermine expansion, growth, competitiveness, and profitability crossed the manufacturing sector.”

Similarly, the study noted that the non-manufacturing assemblage recorded a flimsy slowdown successful performance, with the BCM scale falling to 114.5 points from 116.2 successful August 2025.

“This month’s show resumes the inclination of reduced concern enactment successful the assemblage aft the archetypal interruption successful August.

“Heightening levels of concern constraints placed galore non-manufacturing firms successful hard conditions, with insecurity emerging arsenic 1 of the astir pressing challenges,” the study added.

The non-manufacturing assemblage comprises crude petroleum, earthy gas, lipid and state services, and construction.

The station Binding constraints slowdown manufacturing activities successful September — REPORT appeared archetypal connected Vanguard News.