Assessment of the Impact of Covid-19 Pandemic on the Manufacturing Sector of the Nigerian Economy

Abstract

This study assessed the impact of covid-19 pandemic on performance of manufacturing sector using the monthly data of Purchasing Managers ‘Index (PMI) for the manufacturing sector from January 2018 to December 2020. The Two-way ANOVA with replication was used to test if there is any quarterly and annual differences in the PMI for 2020 which is the period of the Covid-19 pandemic as against the 2018 and 2019 data. The different quarters were used as repeated trials. The result reveals that the monthly PMI which has been fluctuating between 50 and 60 index points from January 2018 till March 2020 where the pandemic crises heightened and the attendant lockdown to contain its effect began, significantly contracted from April 2020. The PMI contracted from April 2020 and still recovering till Dec 2020. A sharp decline in the second quarter (Q2) of 2020 which gradually recovered in third and fourth quarter but still in the contraction zone was observed. The result also revealed a significant contraction in PMI in 2020 as attendant effect of Covid-19 on manufacturing businesses as against the previous years. The study concludes that the covid-19 pandemic has a significant effect on the manufacturing sector of the Nigerian economy.