Nigeria’s manufacturing sector is showing signs of optimism for the first time in nearly two years. A survey by the Manufacturers Association of Nigeria (MAN) revealed a rise in their CEO Confidence Index (MCCI) for the first quarter of 2024. This increase is attributed to expectations of easing diesel prices and a recent appreciation of the Nigerian Naira.
The MCCI rose to 53.5 points, up from 51.8 points in the previous quarter. An index above 50 indicates an anticipated economic expansion, whereas a score below suggests a deteriorating operating environment. The report highlights that even though some key performance indicators remain unfavorable, manufacturers are more positive due to the anticipated drop in diesel prices, a significant cost factor for their operations.
Looking ahead, the survey projects continued improvement. Business conditions are expected to rise further, and employment is also anticipated to see an upward trend. While not all sectors share the same level of confidence, eight out of ten industry groups surveyed displayed optimism above the key 50-point threshold. This suggests a broader positive outlook within the Nigerian manufacturing sector.
Source: Business Day