Emmanuel OchayiThe Manufacturers Association of Nigeria (MAN) has painted a cautious outlook for 2024, projecting a tough initial six months for the industry.
In their “Manufacturing Sector Outlook for 2024,” MAN’s Director-General highlighted concerns about forex-related challenges and high inflation rates hampering manufacturing performance, likely persisting until mid-year.
Expressing concern over the situation, the Director-General stated, “The outlook for the manufacturing sector in 2024 may not be positive, at least in the first half of the year. Recovery is contingent upon policy stimulus and strategic trade strategies to promote resilience and growth.”
According to MAN’s report, a modest upturn in manufacturing output might occur from the third quarter as challenges related to forex and interest rates are expected to ease.
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The association predicts that government disbursement of capital provisions, particularly favoring local products, could spur higher manufacturing output in the later part of the year.
To address these challenges, MAN recommended redirecting fuel subsidy cost savings towards production-focused policies and overhauling the power sector to boost electricity generation, aiming for energy-cost efficiency.
In urging government action, the association emphasized the need to clear the $7 billion forex backlog, maintain forex liquidity, and streamline credit allocation to manufacturers, proposing a reduction in the number of Bureau De Change operators to rein in excesses and supervise operations effectively.
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