Manufacturers in Nigeria have expressed increased confidence in the Nigerian economy.
This was revealed in the Manufacturers CEO’s Confidence Index (MCCI) report for the second quarter of 2022. The Manufacturers’ confidence rose by 0.7% to 54.6 points in Q2 from 53.9 points in the previous (first) quarter of the year. The report, which was released by the Manufacturers Association of Nigeria (MAN) on Tuesday, is a collation and measurement of views from respondents in a direct survey involving 400 Chief Executive Officers of companies that are members of MAN.
Is that an indication of the sector’s performance in the period? Not at all. The Q2 period was actually one of many challenges for the manufacturing sector. Lack of forex for raw materials import, rising inflation, rising operating cost due to significant increase in the price of diesel, frequent collapse of the national power grid, and consumers’ dwindling purchasing power, are some of the challenges that plagued the sector in the period under review.
What’s the reason for their renewed confidence?
Stakeholders in the sector project that the economy has seen its worst phase and turned the corner, expressing confidence that things will now begin to look up. The report noted that while there were more challenges in Q2, adjustments made by the government, manufacturers, and households resulted in a “fairly better” operating environment than in Q1. “The aggregate MCCI score of 54.6 points shows that manufacturers still have minimal confidence in the economy, with the expectation of improvement in the operating environment”, it read.