Production and distribution costs in the manufacturing sector surged by 18.2 per cent in the fourth quarter of last year, highlighting the macroeconomic environment’s worsening impact on manufacturers.
Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, disclosed this on Monday in the Q4 2024 Manufacturers CEO Confidence Index report, which painted a grim picture of the industry’s struggles with high costs, policy inconsistencies, and economic instability.
The report states, “The findings show that production and distribution costs surged further by 18.2 per cent in the quarter under review, from the 20.1 per cent increase witnessed in the preceding quarter.”
While the report indicated a slight improvement in sales volume by 1.1 per cent, other key indicators such as capacity utilisation, manufacturing investment, and employment recorded further contractions.
MAN’s MCCI is an index to measure changes in the quarterly pulse of manufacturing activities concerning movement in the macroeconomy and government policies.
It has a baseline of 50 points, suggesting a stationary point in the economy. When the MCCI rises above 50 points, it shows manufacturers have increasing confidence in the economy, and when it drops below 50, it signifies otherwise.
