MAN President Highlights Sector Challenges and Policy Recommendations at MCCI Q1 2024 Presentation

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Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN) stated this during his opening remarks at the Official Presentation of the MAN CEO’s Confidence Index (MCCI) on Thursday, May 23, 2024, at MAN House, Ikeja, Lagos.
Meshioye noted that the MAN CEO’s Confidence Index (MCCI) Report, since its inception in 2019 has marked a significant milestone in the journey of Nigeria’s manufacturing industry. As the President of the Manufacturers Association of Nigeria (MAN), and on behalf of the Association, I extend my heartfelt thanks for your continued partnership and support, which have been crucial to the sector’s growth. We are honored to share insights and key findings from this report with all of you, he added.

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“The manufacturing sector is pivotal to the economic growth and development of our nation. This report sheds light on the current state of the industry, its challenges, and the opportunities that lie ahead he added that today’s presentation is an opportunity for constructive dialogue and idea exchange to advance Nigeria’s manufacturing sector.
I express my sincere gratitude to all stakeholders, researchers, and contributors who have made this report possible. Your dedication and commitment to the progress of the manufacturing industry are deeply appreciated, he stressed.
As you are aware, MAN President stated that the Monetary Policy Committee of the Central Bank of Nigeria met a few days ago and made critical decisions with far-reaching implications for the manufacturing sector. He continued, the Nigerian economy has faced significant challenges in recent years, including foreign exchange volatility, escalating energy costs, and food insecurity. These challenges have intensified inflationary pressures, adversely impacting consumers’ purchasing power and impeding the growth of the manufacturing sector, leading to reduced competitiveness, he stated.
“As the umbrella body for manufacturers in Nigeria, MAN acknowledges the efforts of the Monetary Policy Committee (MPC) in confronting economic challenges, notably inflation and exchange rate fluctuations. While MAN understands the rationale behind the MPC’s decision, it is crucial for the committee to thoroughly assess the potential impact on the real sector and the multiplier effect on the nation. Collaborating with fiscal authorities is essential to reinforce the sector’s role in driving significant employment, productivity, forex earnings, and economic progress.
Notably, the strategy of raising the Monetary Policy Rate (MPR) has persisted for nearly two years without yielding positive results. MAN had hoped that the Central Bank of Nigeria (CBN) would explore alternative measures, particularly in addressing the underlying causes of inflation, primarily cost-push factors.

MAN earnestly urges the MPC to carefully evaluate the effects of these monetary policy actions on both the manufacturing sector and the broader economy. Achieving a delicate equilibrium between addressing macroeconomic challenges and fostering the growth and resilience of the manufacturing industry is crucial. Therefore, MAN advocates for robust collaboration between monetary and fiscal authorities and suggests considering the following policy measures:
– Implement targeted interventions aimed at mitigating the underlying cost-push factors driving inflation, thereby alleviating the financial burden on manufacturers.
– Prioritize forex and credit allocation to manufacturers and fast-track the proposed recapitalization of the banking sector.
– Emphasize the development of infrastructure within industrial hubs and bolster nationwide investments in renewable energy sources to reduce logistical expenses and enhance competitiveness.
– Further reduce the country’s reliance on imported products and raw materials by providing incentives for investment in backward integration and local sourcing to minimize pressure on the dollar.

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