According to a survey conducted by the Manufacturing Association of Nigeria (MAN), the top three difficulties faced by manufacturers in the first quarter of 2023 were excessive taxes, a lack of reliable power, and low consumer demand.
The shortage, delay, and high cost of raw materials, along with their unavailability and high cost, were all mentioned in the survey titled “Manufacturers CEO’s Confidence Index (MCCI)” as problems facing the industry.
It was noted that although the current employment condition dropped from 51.3 to 50.7 points, it still managed to surpass the 50-point threshold.
“Employment Condition is expected to further deteriorate over the next three months, falling to 47.8 points from the benchmark reading of 48.8 points in the prior quarter. On the other hand, the Production Level for the upcoming three months is forecast to plummet to 61.8 points from the 62.2 points registered in the final quarter of 2022, but it still remains significantly above the 50-point benchmark.
The article continued by saying that the unpredictable and challenging macroeconomic environment had made it difficult for manufacturers to make employment decisions. It also said that in the quarter, manufacturers’ top worries included the upcoming national elections, the lingering negative effects of the Russian-Ukrainian war, the acute forex shortage and naira depreciation, the cost of energy, and the limited electricity supply.
According to a sectoral analysis of the business climate in the nation, the electrical and electronics sector and motor vehicle and miscellaneous assembly experienced declines below the benchmark of 50 points.
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“This indicates that manufacturing operators in the two sectoral groups have drastically lost faith in the economy. The sales performance in these sectoral groups has been significantly worsened by the unstable macroeconomic indicators and the erratic electricity supply.
According to the zonal analysis, Kaduna (49.5), Abuja (48.6), Rivers/Bayelsa (46.2 points), and Cross-Rivers/Akwa-Ibom (43.9 points) all had Index scores that were less than the required 50 points.
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