The Manufacturers Association of Nigeria MAN’s Chief Executive Officers (CEOs) member-companies across the six geo-political zones of the country and the ten Sectoral Groups of the Association in responded to special purpose questionnaires designed for data gathering. According to the information provided by these respondents was utilized without making any reference to specific companies and the result thereof is expected to strengthen the advocacy positions of the Association.
The second quarter MCCI report in 2019 generated data from the responses of over 400 CEOs of MAN member-companies across the country (as against 200 respondents engaged in the first quarter 2019) solicited government to improve basic infrastructures within strategic economic hubs nationwide, classify manufacturers as strategic users of gas, expand the roads leading to Lagos Ports and make other ports outside Lagos functional to reduce cargo traffic and stimulate economic activities in those locations;
The data collected focused principally on the positions of CEOs on macroeconomic and business operating environments as it related to stimulate improved performance, generate better contribution to the Gross Domestic Product (GDP) and consciously promote sustained manufacturing growth, Government, as a matter of priority must deliberately put in place enduring measures that will address the challenges identified by CEOs of manufacturing companies in Nigeria.
The MAN’s composite index of 50.9 points is interpreted as a weaker manufacturers’ confidence on the economy when compared with the first quarter performance of 51.3 points; thus, indicating a shrinking manufacturing activity. Also, report of the current MCCI revealed that more sub-sectors and industrial zones performed below the 50-point threshold as against what obtained in the first quarter. This therefore demands that Government should, as a matter of urgency, address the challenges responsible for the observed downward trend, it was added.
“Analysis of sectoral shows that seven (7) manufacturing sub-sectors performed slightly above the 50-point threshold of good performance in the following order: Domestic/Industrial Plastics, Rubber & Foam (54.5); Motor Vehicle & Miscellaneous. Assembly (54.5); Food, Beverage and Tobacco (53.5); Pulp, Paper & Paper Products Printing, Publishing & Packaging (52.0); both Textile, Wearing Apparel, Carpet, Leather and Leather Footwear and Chemical & Pharmaceuticals recorded 51 points; while Electrical & Electronics stood at 50.5 points.
“Three other sub-sectors recorded below 50 points in the following order: Wood & Wood Products (48.0); Non-Metallic Mineral Products (47.5) and Basic Metal, Iron & Steel, Fabricated Metal recorded 46.5 points in the second quarter of 2019.
“It is therefore pertinent to note that, even though majority of the sub-sector recorded fairly improved level of performance, there is still need for Government to initiate robust support measures that will not only stimulate better performance in all the sub-sectors but save those with performances below the 50-point threshold from imminent collapse. Top on the list of sub-sectors that at the moment require urgent attention are the Basic Metal and Non-Metallic.
