Lagos Business NewssTwo sectoral groups’ index out performances others in Nigeria, says MAN

The Manufacturers Association of Nigeria (MAN) has revealed that two sectorial groups of the Manufacturers Confidence Index outperform other groups

According to the report excerpt from the Association’s Manufacturers Confidence Index (MCCI) which was created to gauge the changes in manufacturing activities quarterly as a result of changes in the macroeconomic ambience and Government policies disclosed base on its analysis of the survey data from the sectoral groups shows that Index for Pulp, Paper & Paper Products Printing, Publishing & Packaging (6Ps) MCCI index for 6Ps declined by 2.4 points when compared with 52.9 points recorded in the third quarter of the year. The statement further noted that nevertheless, 6Ps is the only sectoral group with an index the point above the 50 neutral points in the quarter under review.

In the same manner, the Index for Basic Metal, Iron & Steel, and Fabricated Metal increased to 50.00 points in the fourth quarter of 2020 from 49.3 points recorded in the third quarter of the ear.

However, the Index for Foods, beverage and Tobacco group declined by 2.64 points in the fourth quarter of 2020 from 50.7 points recorded in the third quarter of the year.

Though, the Index for Textile, Wearing Apparel, Carpet, Leather and Leather Footwear increased to 40.62 points in the fourth quarter of the year from 40.2 points of the third quarter but fall below base point. Also, the Index for Wood & Wood Products group declined by 1.35 points when compared with 35.6 points of the third quarter.

The statement excerpts from 400 Chief Executive Officers of MAN member-companies disclosed that the Index of Chemical and Pharmaceutical group declined to 43.2 points from 45.7 points recorded in the third quarter. Similarly, the Index of Non-Metallic group declined to 39.5 points in the fourth quarter from 41.1 points recorded in the preceding quarter.

Also, Domestic/Industrial Plastics, Rubber & Foam declined to 40.54 points in the fourth quarter from 43.5 points of the preceding quarter of the year.

All the same, Index for Electrical & Electronics group declined by1.4 points the quarter under review from 32.1 points recorded in the preceding quarter. Likewise, Motor Vehicle & Miscellaneous Assembly increased to 42.7 points in the fourth quarter of 2020 from 41.7 points recorded in the third quarter of the year.

The sectoral performance of MCCI presents a scenario of further degeneration of confidence in the economy by manufacturers in the fourth quarter of 2020.

Consequently, it is important that while addressing the macroeconomic challenges including those thrown up by COVID-19 and End-SARS, Government needs to put in place a fit for purpose sector-specific incentives and measures that would improve the disposable income of Nigerians, ramp up productions, increase employment, tax revenue and export proceeds.