The Manufacturers Confidence Index reported an increase in production and distribution cost in the sector due to the prevailing macroeconomic environment and on account of the pandemic.
Above Chart shows 96% of the manufacturing CEOs agreed that increase in production and distribution cost
The Manufacturers Association of Nigeria (MAN) created Manufacturers Confidence Index (MCCI) to gauge the changes in manufacturing activities quarterly as a result of changes in the macroeconomic ambience and Government policies said this is supported by the rising aggregate prices, the continuous erosion of the value of Naira, increase in electricity tariff, increase in price of PMS, high cost of gas and the distortion caused by the End-SARS demonstration in the period.
Accord to the MCCI report, only 3% of respondents reported no effect while the remaining 1% claimed that the macroeconomic environment has decreasing effect on manufacturing production and distribution costs in this period.
According to the statement excerpts from 400 Chief Executive Officers of MAN member-companies noted that there is no doubt that the macroeconomic ambience that prevailed in the quarter was still influenced by the onslaught of COVID-19 as business activities sluggishly resumed in the period.
MAN soliciting government saying in this post-lockdown easing and emergence of second-wave of COVID-19 periods, it is important that Government begins to critically consider ensuring that FX is allocated to manufacturers at the official rate, particularly for importation of machines and raw-materials that are not at the moment produced in the country. It is important that Government ensures modalities and access to COVID-19 stimulus is friendly to manufacturing companies, it was added.