MAN urges Government to encourages private sector investment in development of local raw-materials with appropriate incentives and funding supports

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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 urged government to refocus on the intertwined Programmes of Backward Integration and Resource-based Industrialization.  These programmes should be directed towards the   selection and development of key natural resources including solids minerals that provide high inter-industry linkages. It is also important that Government encourages private sector investment in the development of local raw-materials with appropriate incentives and funding supports, it was added.

“The Backward Integration (BI) and Resource-based Industrialization programmes of the Government were aimed at developing local raw-materials for industry use adding that the initiatives kicked-off promisingly but slowed as Government attention waned.

In addition, report said it has been observed that much talk on development of local raw-materials reverberates during forex crisis and goes cold with the trickling in of forex. The poor performance of local raw-materials development was corroborated by the opinion of Manufacturers enumerated in the fieldwork of the report. Out of 42% enumerated agreed that local sourcing of raw-materials improved in the quarter under review while another 42% disagreed with 16% simply not being sure.

“Selecting strategic product for Backward integration and further driving the resource-based industrialization agenda;

Encourage investment in the development of machines; iron and steel; petrochemical sectors to support manufacturing

In the second quarter of 2021, Manufacturers noted that the normalcy and tranquility seen in the economy in the first quarter of the year was sustained as business activities increasingly rebounded from the hangover of COVID-19 pandemic. According to them, this is corroborated by the increase in MCCI scores for the   second quarter of the year to 52.9 points from 49.1 points recorded in the first quarter.

“The index score of 52.9 points in the quarter under review was the first it stayed above the 50-neutral point since the first quarter of 2020.

Consequently, Association 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.

“Therefore, this report provided critical recommendations that addressed the various challenges of the manufacturing sector as identified by manufacturers in the quarter under review.

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