The Manufacturers Confidence Index (MCCI) is an index created by the Manufacturers Association of Nigeria (MAN) to gauge the change in quarterly pulsation of manufacturing activities to changes in the macroeconomic ambience and Government policies.
MAN stated that the MCCI report are use as the perceptions of Members CEOs of manufacturing companies to measure any changes in the economy.
In the report released by the Association recently contained that 61% of Members CEOs of manufacturing companies of MAN has disagreed that Government Capital Expenditure implementation encourages productivity in the manufacturing sector. In the same vein, 22% of them were not sure while the remaining 17% simply agreed.
MAN has stressed that capital expenditure has consistently been low over the years. In addition, they pointed out that the capital budget funds are often mis-applied and misappropriated leading to delay in completion and abandonment of capital project in the country.
Therefore, Association said Government as a matter of urgency needs to sustain the prevailing upscaling of capital expenditure budget while minimizing budget on recurrent expenditure. Also, Government needs to ensure timely and adequate release of capital project contract sums to contractors to guarantee seamless implementation and prevent avoidable stoppages.
MAN added that, Government should review the extant capital project contract award processes and establish an effective monitoring and evaluation mechanisms to ensure that projects awarded are timely and fully completed.
Association advocated for recapitalization of Bank of Industry (BOI) and Bank of Agriculture (BOA) to adequately meet the industry credit need at single digit interest rate; Providing a Credit guarantee for industrial loans from commercial banks; Direct intervention from the CBN Governor to ensure that MAN members access the funds, particularly the N1trillion COVID-19 Stimulus Package; Update Manufacturers with the current feasibility of the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMED) and N300 billion Real Sector Support Facility (RSSF) and how they can be accessed.
Consequently, MAN pointed out that the index performance underpinned the improvement in the confidence of manufacturers on the economy, although much is still required to ensure that the current momentum in the economy is sustained and improved upon.