High cost of raw materials top challenges facing manufacturers – MAN

High cost of local and imported raw materials top the ranking of challenges facing the manufacturing sector as outlined in order of intensity by Chief Executive Officers (CEOs) of Manufacturing Companies. This was contained in the Manufacturers CEOs Confidence Index (MCCI), Volume 12, Fourth Quarter, 2021 released by the Manufacturers Association of Nigeria (MAN). MCCI […]

High cost of local and imported raw materials top the ranking of challenges facing the manufacturing sector as outlined in order of intensity by Chief Executive Officers (CEOs) of Manufacturing Companies.

This was contained in the Manufacturers CEOs Confidence Index (MCCI), Volume 12, Fourth Quarter, 2021 released by the Manufacturers Association of Nigeria (MAN).

MCCI is an index constructed by MAN to measure changes in quarterly pulsation of manufacturing activities in relation to movement in the macroeconomy and Government policies. The Index is a barometer used by MAN to aggregate the views of CEOs of manufacturing companies on changes in the economy. The MCCI also measures changes in key macroeconomic indicators including sector specific factors that represent Government activities and policy measures in the economy.

The survey instrument used in the fieldwork of for MCCI is a structured questionnaire administered on the Chief Executive Officers (CEOs) of MAN member-companies across the six geo-political zones and Sectoral Groups of the Association through MAN’s branch networks. Since the first edition, MCCI has consistently provided experiential bases that are critical to strengthening the evidence advocacy dogma of the Association.

The challenges highlighted by the group include inadequate skilled manpower, high cost of transportation; frequent changes in government policies; increase in exchange rate/forex instability; inadequate access to fund/high interest rate on commercial bank loans; poor distribution channel/bad road networks.

Other challenges are high cost of electricity/lack of steady power supply; lack of patronage by MDAs; multiple taxes and levies; over-regulation by government agencies; gridlock at the national ports; high inflation and high cost of adopting advances technology.