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.
According to the report, MAN used the MCCI report as the perceptions of Members CEOs of manufacturing companies to measure any changes in the economy.
In report released by the Association recently contained that the Members CEOs of manufacturing companies of MAN has pointed out that the Federal Government had created the Executive 003 in recognition of the need for Government establishments to give first choice to made in Nigeria products in public procurements.
“However, there was no perceptible monitoring and evaluation procedure to enforce adherence by MDAs to the Executive Order. The general thinking has always been that Government establishments do not adhere to the Order during procurement and that was corroborated by the responses of manufacturers during the fieldwork of the report. 42% respondents disagreed that patronage of Nigerian manufactured products by Government Ministries, Department and Agencies improved in the quarter under review. Only 28% of respondents agreed while 30% simply are not sure. It is therefore important for Government to consider strengthening the Executive Order by making it justiciable through legislation to ensure that all Government establishments procure available Nigerian products first before sourcing from other countries.
In the report, Association urged government to reverse the Value Added Tax Rate back to the pre 2020 Finance Act rate to improve the disposable income of Nigerian workers, stimulate consumption, promote an upsurge in demand and increase production output
Also, the Association urgently called on the government to always carry out monitoring, evaluate and enforce the implementation of the Executive Order 003 to ensure compliance by MDAs
MAN noted that although there is an improvement in the confidence of manufacturers on the economy for the year under review, much is still required to ensure that the current momentum in the economy is sustained and improved upon. Therefore, this report provided critical recommendations that addressed the various challenges of the manufacturing sector as identified by manufacturers in the quarter under review, it was stated.
“We believe that with the ardent implementation of the recommendations, there would be significant positive change in the business operating environment in the country.