MAN calls for Sustainability Industrialization Strategy Policy

Kindly Share This Story:

The Manufacturers Association of Nigeria (MAN) decries that manufacturing sector is currently in and the looming dangers ahead calls for a National Response and Sustainability Strategy to guarantee the survival of sector and avoid further de-industrialization.

 

According to the Association, although the first quarter 2022 MCCI index score of 53.9 points fell below that of the last quarter 2021, the overall result shows that even though the economy recorded positive improvement despite unstable macroeconomic fundamentals, the manufacturing sector is still largely under severe pressure, its health very well in the fringes and below the desired performance threshold. In addition, feedbacks from manufacturers identified Limited supply of electricity; High cost of local  and imported raw-materials; Persisting  acute shortage of forex for importation of machine, raw materials not available locally and persisting insecurity in the country as the first our out of the challenges limiting the performance of the manufacturing sector in the period under review, it added.

http://www.manufacturersassociation.org

Undoubtedly, MAN through its Manufacturers CEO’s Confidence Index noted that the precarious situation that the manufacturing sector is currently in and the looming dangers ahead calls for a National Response and Sustainability Strategy to guarantee the survival of sector and avoid further de-industrialization.

 

The Manufacturers Association of Nigeria (MAN) designed Manufacturers CEO’s Confidence Index (MCCI) for quarterly research and advocacy publication gauge which measures changes in pulse of operators and trends in the manufacturing sector quarterly, in response to movements in the macroeconomy and Government policies.

 

 

The standard diffusion factors deployed in the MCCI analytic processes include the Current Business Condition, Business Condition for the next three months, Current Employment Condition (Rate of Employment), Employment Condition for the        next three months and Production Level for the next three months.  The direct survey on over 400 Chief Executive Officers of MAN member-Companies has MCCI contained a baseline index of 50 points that suggests a stationary point in the economy and affirms the level of confidence and performance in the quarter under review.

 

The trend observed by over 400 Chief Executive Officers of MAN member-Companies in the first quarter 2022 MCCI resonates with a priori expectations, the oscillatory trajectory of the macroeconomy and fluctuating manufacturing performances observed in the last two years. In fact, the performance recorded is largely similar but with slight differing magnitude when compared with what was obtained in the last quarter of 2021, it was noted.

READ ALSO THIS: Shrinking Industrial Landscape: MAN decries Over Concentration Policy on Trade and Services to Manufacturing Sector

“Clearly, the prevalence of familiar binding constraints to the steady growth of the manufacturing sector, the reverse effects of COVID-19 pandemic and the food shortages, rising inflation, foreign exchange parity, economic uncertainty, general increase in price of petroleum products, supply chain disruptions and the growing concern of future increase in the prices of  wheat and fertilizer manufacturing inputs occasioned by the Russian invasion of Ukraine are contributory factors that impacted the aggregate MCCI.

 

“The general decline in the index point and the dimmed outlook for the second quarter evidenced by expectations of lower production, employment and unfriendly business condition, is a cause for concern.

 

The report disclosed that the decline in the Index score for the First Quarter, 2022 include eroding disposable income of consumers, high interest rate, excessive drive for revenue by Government, obvious neglect of the economy for politics, the persistent acute shortage of  Forex; insecurity, the  immediate impact of  the Russian Invasion of Ukraine  as seen in the hike in price of Diesel, wheat and other imported manufacturing inputs.


Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings

x
%d bloggers like this: