The Manufacturers Association of Nigeria (MAN) has revealed a concerning decline in the Current Employment Condition, indicating a drop from 51.3 points in the final quarter of 2022 to 50.7 points in the initial quarter of 2023. This trend, as unveiled in the Manufacturers CEOs Confidence Index report, paints a grim picture of the prevailing unemployment crisis within the real sector.
MAN’s report doesn’t stop at the current state but also forecasts a further deterioration in employment conditions, with an anticipated decline to 47.8 points in the coming months. This report, published quarterly, serves as a comprehensive analysis tool that gauges fluctuations and trends within the manufacturing sector, providing invaluable insights for industry stakeholders.
The association’s aggregate Index Score, termed the Manufacturers CEOs Confidence Index (MCCI), saw a drop to 54.1 points in the first quarter of 2023. Notably, the report points out that manufacturers are grappling with intricate employment decisions due to the turbulent and unpredictable macroeconomic landscape.
A combination of factors including acute forex scarcity, the devaluation of the naira, energy cost spikes, electricity supply limitations, speculation surrounding naira redesigning, national elections, and lingering effects of the Russian-Ukrainian conflict have been identified as major concerns for manufacturers during this quarter.
Opinion:
The President of MAN, Francis Meshioye, expressed deep concern over the current scenario. Meshioye highlighted the distressing trend of downsizing and divestment among manufacturers. The recent surge in the Monetary Policy Rate, paired with the forex crisis linked to the naira’s floating, has exacerbated the challenges faced by manufacturers. Meshioye passionately appealed to the government to recognize the significance of the manufacturing sector, stressing its pivotal role in boosting economic growth. He underscored that a thriving manufacturing sector not only increases domestic production but also reduces the dependency on imports, thereby alleviating the foreign exchange pressures the nation faces.
(Published by Marketnewsng)