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  • Business - Companies
  • Updated: May 24, 2024

Economic downturn: Manufacturers cut production, jobs - MAN

Economic downturn: Manufacturers cut production, jobs - MAN

In the first quarter of 2024, the Manufacturers Association of Nigeria has said manufacturers were forced to cut production and jobs due to macroeconomic-related headwinds.

Oluwasegun Osidipe, MAN’s Director of Research and Advocacy, made this known on Thursday while presenting the Manufacturers CEOs Confidence Index at a press conference in Lagos.

According to the report, despite slight optimism which saw MCCI points record a marginal increase above the 50 points confidence threshold, current business condition and current employment remained low, below 50 points.

MAN associated this with the lingering effects of rising inflation, escalated energy prices, exchange rate instability and Customs duty rates.

The report stated that production and distribution costs surged further by 20 per cent in the first quarter of 2024 while “capacity utilisation declined further by 9.7 per cent."

It read further, “The volume of production slid further by 10.14 per cent in Q1 2024 from a contraction of 4.6 per cent recorded in the previous quarter.

“Manufacturing employment further declined by 5.27 per cent in Q1 from the 4.46 per cent contraction recorded in the preceding quarter.

Commenting on the report, Francis Meshioye, the President of the Manufacturers Association of Nigeria, asserted that forex, inflation and energy crises impacted negatively on the manufacturing sector.

Meshioye lamented that production levels declined, a development that led to decreased competitiveness of the sector.

Meshioye said, “Undoubtedly, the manufacturing sector remains the most sustainable driver of steady economic growth, inflow of foreign exchange and enduring shared prosperity.

“MAN is therefore expectant that the Government will intentionally prioritise the manufacturing sector by implementing the sector-specific recommendations contained in this report and providing the required policy support and incentives.

“This is the surest way of revamping the sector and repositioning the economy towards sustainable growth and development.”

 

 

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