Manufacturers CEO’s Confidence Index rises by 1.7 points in Q1

Date:

May 24, 2024.

Thank you for reading this post, don't forget to subscribe!

Azonuchechi Chukwu.

The Manufacturers CEO’s Confidence Index (MCCI) of the Manufacturers Association of Nigeria (MAN) rose by 1.7 points for the first in the last six quarters in the first quarter of 2024.

MAN President, Otunba Francis Meshioye,  disclosed this during the Public Presentation of the MAN CEO’s Confidence Index Report on Thursday in Lagos.

The Association’s CEO’s Confidence Index (MCCI) is used to measure changes, quarterly in the pulse of 400 CEOs of manufacturing concerns to development in government policies and movement in macroeconomic indicators.

Meshioye reported moderate improvement in the Aggregate Index Score (AIS) evidenced by the meagre increase from 51.8 points in the fourth quarter of 2023 to 53.5 points.

He said the indicators considered during the period under review include changes in business conditions, employment and production levels in the economy.

The MAN President, however, noted that the current business and employment conditions remained below the average 50 points threshold due to rising inflation, escalating energy costs, exchange rate instability and unstable customs duty rates, particularly in January and February.

Meshioye emphasised the need for the development of the manufacturing sector to be at the front burner for economic policymakers as the sector was the most essential for sustained economic growth and shared prosperity.

“The Manufacturers Association of Nigeria acknowledges the government’s efforts at revitalising the manufacturing sector evidenced by the recent monetary policy initiatives targeted at salvaging the economy.

“However, it must be made clear that most of these policy initiatives have not resulted in a win-win situation.

“Most notably, the consecutive hikes in the Monetary Policy Rate by 600 basis points to combat inflation and encourage the inflow of foreign portfolio investment will not result in sustainable gains for the naira.

“In its bid to bring high inflation under control, the Apex bank must strike a balance by implementing policies that stimulate foreign investment and promote an enabling environment for domestic manufacturers to flourish.

“It is high time the government focused more on promoting foreign direct investment and exports of high-value-added manufactured goods that are capable of boosting the country’s foreign exchange reserves and sustaining the appreciation of the naira,” he said.

Meshioye also urged the government to frontally address insecurity, improve electricity supply, promote fiscal sustainability, and ensure policy consistency.

He said among other priorities, the fiscal authority must also lend supportive measures by adequately incentivising the manufacturing sector and other productive sectors.

“This is very important to boost non-oil export earnings in addition to the increase in oil export proceeds occasioned by increased oil production, rising global oil prices and the coming on stream of the Dangote Refinery,” he said.

In his remarks, Mr Segun Ajayi-Kadir, Director General, MAN, noted that the performance showed that manufacturing was set on the path of restoration and recovery, with the hope of improvement in the next quarter.

Ajayi-Kadir attributed the performance to the undying resilience of manufacturers, the reasonable gains recorded by the Naira in the latter part of the first quarter and the expectation of a reasonable reduction in diesel price.

He also urged the government to intentionally prioritise the manufacturing sector by implementing the sector-specific recommendations to revamp the sector and reposition the economy towards sustainable growth and development.(www.naija247news.com).

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

Share post:

Subscribe

Popular

More like this
Related

Economist Predicts Gradual Decline in Nigeria’s Inflation Starting July

Bismarck Rewane, CEO of Financial Derivatives Company, predicts that...

Nigeria’s FX Reserves Peak at $33.58 Billion Amid Naira Stability

Nigeria’s foreign exchange (FX) reserves have reached their highest...

Nigerian DisCos Receive N21 Billion for Meter Procurement and Installation

The eleven electricity distribution companies (DisCos) in Nigeria have...

US Lawmakers Advocate for Release of Detained Binance Executive in Nigeria

Two U.S. lawmakers who recently visited Tigran Gambaryan, a...
× How can I help you?