The Manufacturers Association of Nigeria (MAN) predicted a tough start for manufacturers in 2024, especially in the first six months. They express concern about the sector’s challenges, emphasizing the need for the Federal Government to address the current $7 billion Forex Backlog. The Director-General of MAN highlighted these points in the “Manufacturing Sector Outlook for 2024.”
Despite the anticipated difficulties, MAN foresees some positive aspects. They expect sectoral real growth to reach 3.2%, contributing over 10% to the economy. The Manufacturers’ CEOs Confidence Index is predicted to rise above 55 points by the end of Q4 2023. However, average capacity utilization may hover around 50%, impacted by forex-related challenges and high inflation rates affecting manufacturing until mid-year.
According to the report, the outlook for the manufacturing sector in the first half of 2024 may be challenging. Recovery is cautiously expected in the third quarter, especially when policies are deployed and export-focused, and trade strategies are employed. The aim is to foster resilience, steady growth, and meaningful traction in the later part of the year.