A survey by the Manufacturing Association of Nigeria (MAN) has showed that multiple taxes, poor power supply and low patronage are the top three challenges that manufacturers encountered in the first quarter of 2023.
The survey titled, ‘Manufacturers CEO’s Confidence Index (MCCI)’ included unavailability, delay and high cost of raw materials as well as scarcity, and poor allocation of forex as other issues facing the sector.
It stated that the current employment condition declined from 51.3 points to 50.7 points but remained marginally above the 50-point benchmark.
“Employment Condition for the next three months is projected to further plunge below the benchmark points to 47.8 points against the 48.8 points obtained in the preceding quarter. On the other hand, Production Level for the next three months remains strongly above the 50-point benchmark but is projected to nosedive to 61.8 points from 62.2 points recorded in the last quarter of 2022.”
It added that the employment decision by manufacturers has been difficult due to the unpredictability and difficulty in the macroeconomic environment, adding that the issues of acute shortage of forex and depreciation in the naira, cost of energy and limited supply of electricity, speculation about the effect of redesigning of naira, the National elections and the lingering adverse effect of the Russian-Ukrainian war were major concerns of manufacturers in the quarter.
On sectoral analysis of business conditions in the country, it stated that the electrical & electronics and Motor Vehicle & Miscellaneous Assembly plummeted below the 50-point benchmark.
“This suggests a gross loss of confidence in the economy among manufacturing operators in the two sectoral groups. Erratic electricity supply and instability of macroeconomic indicators have significantly worsened sales performance in these sectoral groups.”
For zonal analysis, it stated that analysis of the 14 industrial zones shows that the Index scores of Kaduna (49.5), Abuja (48.6), Rivers/Bayelsa (46.2 points) and Cross-Rivers/Akwa-Ibom (43.9 points) fell below the 50-point standard.