In Above Figure shows Manufacturers’ responses
The Manufacturers Confidence Index (MCCI) is an index created by the Manufacturers Association of Nigeria (MAN) to gauge the change in quarterly pulsation of manufacturing activities to changes in the macroeconomic ambience and Government policies. According to the report under review, MAN used the MCCI report as the perceptions of Members CEOs of manufacturing companies to measure any changes in the economy.
The report stated that though the performance of the economy in the second quarter of 2021 consolidated on the achievement made in the first quarter after a very difficult period accessioned by the onslaught of COVID-19 pandemic and the quarter under review, businesses activities appeared to have further stabilized.
Nevertheless, 95% of MAN member companies CEO agreed that multiple and over regulation by Government agencies depressing on manufacturing productivity
According to the MCCI survey’s responses from manufacturers in the fields disclosed that over-regulation of the manufacturing sector by Government agencies still persisted in the quarter under review. Majority of respondent, 95% agreed that multiple and over regulation by Government agencies have depressing effect on manufacturing productivity. 3% of respondents are not sure while the remain 2% simply disagreed as shown in Figure ‘v’. Manufacturers suffer multiple regulation on a single manufacturing process occasioned by the agencies of the Federal, State and Local Governments.
The report further pointed out that the Federal Government has in its possession the Steve Orasanye Commission report on Harmonization and Rationalization of Government Agencies, it is important to commence full implementation of the content of the report backed with proper monitoring and evaluation.
In the second quarter of 2021, the normalcy and tranquility seen in the economy in the first quarter of the year was sustained as business activities increasingly rebounded from the hangover of COVID-19 pandemic. This is corroborated by the increase in MCCI scores for the second quarter of the year to 52.9 points from 49.1 points recorded in the first quarter. The index score of 52.9 points in the quarter under review was the first it stayed above the 50-neutral point since the first quarter of 2020.
Consequently, the index performance underpinned the improvement in the confidence of manufacturers on the economy, although much is still required to ensure that the current momentum in the economy is sustained and improved upon. Therefore, this report provided critical recommendations that addressed the various challenges of the manufacturing sector as identified by manufacturers in the quarter under review. We believe that with the ardent implementation of the recommendations, there would be significant positive change in the business operating environment in the country.