Chief Executive Officers (CEOs) of Manufacturing Companies in Nigeria has called on the federal government to repair and expand the roads leading to Lagos Ports and make other ports outside Lagos functional so as to address the gridlock challenges and the associated cost.
The CEOs in the MAN CEOs Confidence Index for the first quarter of 2019 equally noted that a number of challenges still confront the sector, despite the belief that support by the federal government to the sector has increased.
MCCI is a quarterly survey conducted by the Manufacturers Association of Nigeria (MAN) to measure the pulse of the manufacturing sector. This quarter’s survey paints the picture of a manufacturing sector that is struggling, while the confidence level of the CEOs in the sector, though not negative, is dwindling.
The CEOs ranked power supply and cost of energy first and closely followed by multiple taxation and over regulations, while high interest rate/difficult condition in accessing loans in Nigeria was ranked third.
Other challenges they said, include poor accessibility to ports/gridlock at the national ports/high demurrages, poor economic infrastructure/bad roads/poor rail transport systems, difficulty in sourcing forex/multiple forex widows/no special treatment of manufacturers in sourcing Forex and low patronage/poor patronage from the government.
Also, counterfeiting/influx of sub-standard products, grey activities in the free trade zone, poor purchasing power/high inflation, delay in issuing end users certificate/textile PAAR processing/import permit by NAFDAC/red-tapes in these processes, high cost of spare parts and non-implementation of import ban on tomatoes/juices.
MAN in CEOs MCCI for the first quarter of 2019 said the respondents to MCCI questionnaires were of MAN member-companies across the six geo-political zones of the country and the 10 Sectoral Groups of the Association, adding that the information provided by these respondents was utilized without making any reference to specific companies.
The MCCI first quarter 2019 is the maiden edition that took into account manufacturer’s perception on a set of diffusion factors which include current business condition, business condition for the next three months, current employment condition, rate of employment, employment condition for the next three months and production level for the next three months.
It also considered the general macroeconomic condition (foreign exchange, lending rate, credit to the manufacturing sector and capital expenditure of the government) and the business operating environment.
Respondents to MCCI questionnaires were CEOs of MAN member-companies across the six geo-political zones of the country and the ten Sectoral Groups of the association. The information provided by these respondents was utilized without making any reference to specific companies. The result of the MCCI is therefore critical to strengthening the advocacy mandates of the Association.
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