The Manufacturers Association of Nigeria (MAN) has said that Foreign Exchange (Forex) should be made available for the purchase of manufacturing inputs and there should be a continuous improvement on the power supply and the general upgrade of the nation’s infrastructure.
This is according to a quarterly Manufacturers CEOs Confidence Index (MCCI), conducted by the Manufacturers Association of Nigeria (MAN) to measure the pulse of the manufacturing sector.
The survey which captured the first quarter of 2019 had over 200 Chief Executive Officers (CEOs) of MAN member-companies across the six geopolitical zones of the country and the ten Sectoral Groups of the Association respond to questionnaires in a bid to identify key areas that need review.
However, the report explained that the majority of respondents, 63 per cent, do not agree that the rate at which commercial banks lend to manufacturers encourages productivity in the sector.
“This can be justified with the double-digit cost of borrowing from the commercial banks, which no doubt, discourages investment, affirming the need for measures that will lower the cost of borrowing, particularly to the manufacturing sector.
“54 per cent of manufacturing companies’ CEOs do not agree that the volume of Commercial Banks loan to the manufacturing sector encourages productivity in the sector. It is therefore important that a policy should be designed to improve the proportion of commercial banks loanable funds that go to the manufacturing sector. 28 per cent of respondents agreed while the 18 per cent were not sure if the size of the Bank loan to the sector encourages productivity.”
On Capital Expenditure, the majority of respondents did not agree that Government implementation encouraged productivity in the sector.
The Association affirmed the survey by highlighting the available poor economic infrastructure such as inadequate power supply, bad road network, high cost of abstracting water, low patronage and many more.


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