95% of local manufacturers agreed that various taxes and levies, as well as overregulation by government agencies, continued in the second quarter of this year.

This was disclosed by the Manufacturers Association of Nigeria in its Manufacturers Confidence Index for Q2 2021, as it cited that manufacturers in the country face several regulations from federal, state, and local government agencies on a single production process.

“Majority of respondents, 95 per cent, agreed that multiple and overregulation by government agencies have depressing effect on manufacturing productivity. Three per cent of respondents are not sure while the remaining two per cent simply disagreed,” MAN said.

MAN cited concerns such as currency volatility, unfavourable financing rates, disincentive government spending directed at manufacturers, port issues, and inefficiencies in the backward integration agenda.

MAN added “With the Monetary Policy Rate standing currently at 11.5 per cent, there may not be credible reason the average lending rate to manufacturers by the banks is still as high 22 per cent as revealed by MAN survey of the sector,”

What you should know about MCCI

The MCCI is a measure of the change in quarterly pulsation of manufacturing activities in response to changes in the macroeconomic environment and government policies developed by the association. A total of 400 CEOs from MAN member firms took part in the poll.

The MCCI has a baseline index of 50 points, indicating that the economy is at a standstill. Any index point above 50 shows that manufacturers are optimistic about the economy and manufacturing performance, while any index point below 50 indicates the opposite.

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As part of the state’s efforts to improve the ease of doing business, the Manufacturers Association of Nigeria and other stakeholders commended the Ogun State Government’s establishment of an online business premises registration system.