MAN laments how Government Capital Expenditure Implementation hampers productivity in real sector

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Government Capital Expenditure (CAPEX) recorded 52% of 400 CEOs member companies of the Manufacturers Association of Nigeria (MAN) who respondents to interviewed acknowledged that truly Government Capital Expenditure Implementation did not encourages productivity in the sector.

According to the Manufacturers Confidence Index (MCCI) an index which the Manufacturers Association of Nigeria (MAN) used to determine the changes in manufacturing activities quarterly as a result of changes in the macroeconomic ambience and Government policies while appreciating the efforts of Government to improve the state of infrastructure in the country, MAN member-companies responded saying that the low allocation for provision of infrastructure facility in the yearly budget, the poor implementation of the budgetary provisions and the absence of monitoring and evaluation mechanism to interrogate the implementation of the budget and relevant Executive Orders. This development has left the country’s infrastructure in a dilapidated state and has not been able to spur the desired economic growth through enhanced real sector productivity, the report noted.

 

Nevertheless, MCCI of 400 CEOs of MAN recorded 16% of respondents among the MAN member companies agreed to the efficacy of Government’s capital expenditure in spurring productivity while 32% of them were not sure if Government’s CAPEX spurs productivity.

In the nutshell, from the poor performances of the indexes above, is an indication that demand for better management of the macroeconomy; strategic support for the manufacturing sector to maintain production despite the intensity of the second wave of COVID-19; intentional initiatives to better control the spread COVID-19; and the building of institutional framework that will checkmate all forms of restiveness that can dislocate the economy.


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