*Manufacturers CEOs’ Confidence Index Q2 2022  records marginal increase to 54.6 points despite the plethora of challenges, including poor access to Forex, global inflation, and frequent collapse of national electricity grid

Gbenga Kayode | ConsumerConnect

As the economic environment becomes harsh and more unfriendly to entrepreneurship, businesses in recent times, the Nigerian manufacturers have related their how they tackle the prevailing challenges.

The businessmen and women in the real sector of the country’s economy said that had adopted some survival strategies and adjustments.

Similarly, the confidence of Chief Executive Officers (CEOs) in the sector has inched up 0.7 points to 54.6 points in the second quarter (Q2) of 2022, from 53.9 points in the previous quarter of the year.

ConsumerConnect reports the Manufacturers Association of Nigeria (MAN) disclosed this development in its Manufacturers CEOs’ Confidence Index (MCCI) Q2’22 report made available Monday, July 25, 2022.

MCCI is a quarterly research and advocacy publication of MAN, which measures changes in pulse of operators and trends in the manufacturing sector quarterly, in response to movements in the macroeconomy and government policies.

The document uses the primary data mined through direct survey on over 400 Chief Executive Officers (CEOs) of MAN member-companies.

The report noted: “In Q2’22, the MCCI marginally increased to 54.6 points, from 53.9 points recorded in the first quarter of the year, despite the plethora of challenges, including poor access to foreign exchange (Forex) for importation of raw materials that are not available locally, rising global inflation, aggressive drive for revenue by government, frequent collapse of the electricity grid, steady rise in price of diesel, scarcity of wheat and other manufacturing inputs due to the ongoing war in Europe, and wide spread insecurity that combined to limit productive activities in the economy during the quarter”.

With the aggregate MCCI score at 54.6 points, being above the 50 baseline points, the report said it shows that manufacturers still have minimal confidence in the economy, with the expectation of improvement in the operating environment.

The report further noted: “The meagre improvement in the index score in the second quarter of 2022 implies that manufacturers’ confidence in the economy slightly improved above what obtained in the preceding quarter.

“This signifies that manufacturers responded to the economic challenges that prevailed in the quarter with appropriate survival strategies and adjustments, including remodelling of production operations, after the marginal slowdown experienced in the first quarter.”