The Manufacturers Association of Nigeria has revealed that 2024 may end up being a disturbing year for manufacturers, as it sees the first six months as a tougher one in 2024 for key players in the industry.
Manufacturers Association of Nigeria (MAN) has urged the Federal Government to settle the current $7 billion forex backlog.
The association's director-general stated this in its “Manufacturing Sector Outlook for 2024,” made available to The PUNCH.
According to the organization, 24 sectoral real growth is expected to hit about 3.2%; contribution to the economy will most likely exceed 10%; and the Manufacturers’ CEOs Confidence Index is predicted to rise above 55-point thresholds by the end of Q4 2023.
Average capacity utilization is expected to hover around the 50% threshold as the forex-related challenges and high inflation rate limiting manufacturing performance may linger until mid-year.
The report read, in part,
- Judging from the observed trend, it is obvious that the outlook for the manufacturing sector in 2024 may not be a positive one, at least in the first half of the year. The period will be challenging, with a subtle possibility of recovery from the third quarter.
- The envisaged recovery is highly dependent on deploying policy stimulus supported by a synthesis of domestic growth-driven, export-focused, and offensive trade strategies. This will promote resilience and steady growth and ensure the sector gains meaningful traction later in the year.
MAN also predicts higher manufacturing output from the beginning of the year's third quarter as the government disburses capital provisions of the budget to abandoned, ongoing, and new capital projects, with expected special preference for locally made products.
Read more: https://www.investingport.com/manuf...government-to-clear-fx-backlogs-of-7-billion/