The statement was contained in the Second Quarter 2019 Manufacturers CEOs Confidence Index (MCCI) survey conducted by the Manufacturers Association of Nigeria (MAN) primarily to feel the pulse of the manufacturing sector.
The report said even though a large percentage of respondents claimed that the level of local raw-materials sourcing has increased in the country, greater proportion of those interviewed are still of the view that effort should be intensified to improve the development, sourcing and utilization of local raw materials.
“Government needs to promote private sector driven policies that would further enhance the capacity of relevant institutions to deliver on set mandates and improve the level of local sourcing of raw materials.
“Even though only 38 percent of those interviewed agree that the level of local sourcing of manufacturing inputs has improved, the cumulative percentage of those that disagree (39 percent) and those not sure (23 percent), which is 62 percent, signify that there still exist a larger room for improvement.
“Therefore, Government needs to properly fund the relevant institutions, initiate policies that will give priority attention to the development of local raw-materials in commercial quantities, create friendlier environment for investment on the value-chains of these materials and ensure that adequate forex is made available for importation of vital raw materials that are at the moment, not available locally.
Man also urge government to stimulate improved performance, generate better contribution to the Gross Domestic Product (GDP) and consciously promote sustained manufacturing growth, Government, as a matter of priority must deliberately put in place enduring measures that will address the challenges identified by CEOs of manufacturing companies in Nigeria
It also measured the performance of the sector by analyzing the general macroeconomic condition (Foreign Exchange, Lending Rate, and Credit to the manufacturing sector and Capital Expenditure of the Government) and the business operating environment (Over-regulation, Multiple taxes/levies, Access to sea ports, Local raw-material sourcing, and Government patronage of Nigerian manufactured goods and Inventory.
Chief Executive Officers (CEOs) of MAN member-companies across the six geo-political zones of the country and the ten Sectoral Groups of the Association responded to special purpose questionnaires designed for data gathering. The information provided by these respondents was utilized without making any reference to specific companies and the result thereof is expected to strengthen the advocacy positions of the Association.