The manufacturing sector has been identified as the catalyst of industrialization and engine of growth of any economy
The Manufacturers CEOs Confidence Index (MCCI) is an index created by the Manufacturers Association of Nigeria (MAN) designed to gauge the pulse of the economy on quarterly basis.
The report released by the association yesterday showed the MCCI index point stood at 51.7 in the Third Quarter of 2019, which variance from the 50.9 index point recorded in the Second Quarter previously and presents a meager improvement in Manufacturing CEOs confidence in the economy and the current policy direction of the Federal Government.
Although, the Third Quarter index point indicates marginal improvement in the economy over the preceding quarter, Association said, it is far below projections and expectations of MAN and majority of the member-companies operating in the sector. Therefore, we urge the Government to urgently address the challenges identified and give priority attentions to the general recommendations in this report.
The CEOs of manufacturing companies who were in the fieldwork in the data collected on the performance of the macroeconomy and the business operating environment were analyzed and presented with high level of simplicity for easy understanding of the content and appreciation of its significance
“The MCCI deploys a set of Diffusion Factors which include, 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 to measure a quarterly perception and confidence of manufacturers in the economy. In addition to the set of Diffusion factors for which information is generated on, the general macroeconomic ambience in terms Foreign Exchange, Lending Rate, Credit to the manufacturing sector and Capital Expenditure of the Government behaviours including business operating environment issues such as Over-regulation, Multiple taxes/levies, Access to sea ports, Local raw-material sourcing, and Government patronage of Nigerian manufactured goods and Inventory are also measured
“The manufacturing sector has been identified as the catalyst of industrialization and engine of growth of any economy. The sector in Nigeria faces myriads of challenges, particularly poor economic infrastructure and regulatory challenges. These issues account for the almost stationary performance state of the sector in recent times and underscore the need to deliberate chart a course of action to change the narratives of the sector. Therefore, to restore the sector to the path of meaningful growth, the following measures should be given priority consideration by the Government.
The Captioned Photo: The President, Manufacturers Association Of Nigeria (MAN), Engr Mansur Ahmed