Manufacturers in Nigeria have expressed a lack of confidence in the nation’s economic outlook in August 2024.
This is according to the latest Business Expectations Survey (BES) conducted by the Central Bank of Nigeria (CBN).
The survey, which involved 1,600 business enterprises, revealed that while many sectors were optimistic about the economy, the manufacturing sector was notably pessimistic.
The BES report highlights that the manufacturing sector posted a negative confidence index of -5.5 points, reflecting ongoing concerns about the current business climate.
According to the report, the sectors, such as manufacturing, construction, mining, and utilities, had mixed sentiments.
Recall that Nigeria’s manufacturing sector’s contribution to the Gross Domestic Product (GDP) witnessed a significant contraction over the past two quarters, reflecting a decline of 20.95% from the end of 2023 to the second quarter of 2024.
Director-General of Manufacturers Association of Nigeria (MAN) , Segun Ajayi-Kadir, recently criticized the multiple and high rates of taxes and levies imposed by the three tiers of government and their agencies.
He noted that the challenges facing the manufacturing sector, particularly due to the current macroeconomic conditions, are exacerbated by the ongoing foreign exchange volatility and high electricity tariffs.
Ajayi-Kadir also called on manufacturers to support the implementation of the recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms.
