The manufacturers CEOs Confidence Index (MCCI), an index created by the Manufacturers Association of Nigeria (MAN) to gauge the pulse of the economy on quarterly basis has disclosed through sectorial analysis of group MCCI reflecting a mixed bag in performance across sub-sectoral groups as five (5) manufacturing sub-sectors performed slightly above the 50-point threshold of good performance in the following order: Food, Beverage and Tobacco (60.9); Textile, Wearing Apparel, Carpet, Leather and Leather Footwear (56.8); followed closely by Non-Metallic Mineral Products (56.7); Motor Vehicle & Miscellaneous; Assembly (55.3); while Pulp, Paper & Paper Products Printing, Publishing & Packaging stood at 50.7 points.
Other five sub-sectors recorded below 50 points in the following order: Chemical & Pharmaceuticals recorded 49.7 points; followed closely by Domestic/Industrial Plastics, Rubber & Foam with 49.0 points; while Basic Metal, Iron & Steel, Fabricated Metal recorded 47.0 points; Electrical & Electronics stood at 46.2 points and Wood & Wood Products stood 44.8 in the third quarter of 2019.
“Although the index improved in the review period, a number of sectors which had hitherto performed above the 50-points benchmark slid below the minimum benchmark. This development further reiterated the need for Government to initiate robust support measures that will stimulate better performance in all the sub-sectors and revive those with performances below the 50-point threshold from imminent collapse.
“The top on the list of sub- sectors that performances below the 50-point threshold at the moment require urgent attention are the Basic Metal and Wood & Wood Product which appears to be heavily confronted with a bouquet of challenges ranging from access to raw-materials and the menace of smuggling.
“Zonal MCCI Analysis across the industrial zones also revealed similar picture of mixed performance as eight industrial zones in the following order recorded above average performances: Kano strengthened to 67.7 points in the third quarter of the year; Kaduna (66.2 points); Kwara/Kogi increased to 55.0 points; Ogun (55.6 points); Bauchi/Benue/Plateau (53.2 points); Oyo/Ondo/Osun/Ekiti (51.5 points); while both Edo/Delta and Abuja recorded 50.0 points apiece. Conversely, five sub-sectors weakened below the minimum benchmark for good performance in the following order: Ikeja (49.1 points); Imo/Abia (48.9 points), Apapa recorded (44.0 points); Enugu/Anambra recorded 42.2 points and Rivers/Bayelsa recorded 40.0 points in the third quarter of 2019. The afore-mentioned performances
“Sectoral Breakdown shows that the industrial zones that recorded points below the 50 points thresholds urgently require special support from their respective State Governments. While recognizing Government response to MAN’s request to cascade the Ease of Doing Business Reforms to the State Level, there is still a great need to intensify effort to ensure that the initiative, fully backed with comprehensive and integrated support systems, permeates to all the States in the Federation. This support when provided would address observed challenges, especially those that are peculiar to these zones, guarantee the survival and improved performance of firms.