November 18, (THEWILL) – The North East branch of the Manufacturers Association of Nigeria, MAN, has noted that manufacturing operational environment in 2023 was harsh and unfavourable, as it states also that production capacity average was about 55 percent, while epileptic power supply averaged ten hours daily.
Presenting the 2023 annual report during the 39th annual general meeting of the North East MAN, held at the Jos Business School, Senior Executive Secretary of the Branch, Egili Augustine Ochepo, said the operating environment in 2023 was “unfriendly”, and explained that “this was due to lingering insecurity in the zone, exorbitant cost of energy, high incidents of multiple taxation, the adverse effects of fuel subsidy removal, and exchange rate unification.”
According to Egili, “all these challenges combine to increase the cost of production amidst demand crunch and dwindling manufacturing performance.”
He noted, however, that “in spite of all the challenges, the branch remained resilient by contributing its quota to the economic development of the zone, and the entire country.”
He noted further that the growth of the Nigerian economy as a whole “was hampered at the beginning of 2023 by the lingering effect of cash crunch across the country”, saying some relief came, however, when the old naira notes were reintroduced into the economy, “forcing the growth rate to recover slightly in the second quarter of the fiscal year.”
Nonetheless, Egili maintained that “the removal of the fuel subsidy at the assumption of office of the new administration, and the subsequent unification of the exchange rates regimes with persistent inflationary pressure weakened the performance of the sector from the second quarter of the year.”
In a welcome address at the occasion, the Branch Chairman of MAN, Shehu Sule Nyalun, said the AGM is “a veritable platform not only to assess the activities, performance, and financial standing of members during the period under review, but an opportunity to engage partners in government and interrogate policies as well as issues that affect the sustainability and growth of the manufacturing sector.”
He also noted that “the manufacturing sub-sector of the economy is still facing numerous challenges”, and warned that “if these threats are not tackled by deliberate government policies and intervention, industries stand the risk of shutting down.”
The theme of this year’s AGM was: “Tackling Insecurity and Policy Challenges: Key Solution to the Revival of Nigeria’s Manufacturing Sector”, with Mr Ezekiel Gomos, former Secretary to Plateau State Government, as Guest Speaker.
