MAN predicts 3.2% sectoral growth in 2024
The Manufacturers Association of Nigeria (MAN) has projected sectoral real growth of 3.2 per cent in 2024.
This was contained in the Manufacturing Sector Outlook of 2024, signed by the Director-General of MAN, Mr. Segun Ajayi-Kadiri which was made available to the press.
Ajayi-Kadiri who predicted 3.2 per cent sectoral real growth, noted that it would be contributing over 10 per cent overall economic growth.
According to the DG, “In 2024, sectoral real growth is expected to hit about 3.2 per cent; contribution to the economy will most likely exceed 10 percent and the Manufacturers’ CEOs Confidence Index is predicted to rise above 55 points thresholds by the end of Q4 2023.”
The MAN Boss in the outlook stated that average capacity utilization will still hover around the 50 percent threshold, adding that the forex-related challenges and high inflation rate limiting manufacturing performance may linger until mid-year.
“The sector may experience a meagre improvement in manufacturing output as forex and interest rates-related challenges are expected to subside from the third quarter.
“Higher manufacturing output is envisaged from the beginning of the third quarter of the year as the government disburses capital provisions of the budget to abandoned, ongoing and new capital projects with expected special preference for locally made products.
“The ongoing concessions of seaports, airports and roads may also provide opportunities for the cement sub-sector and contribute to infrastructure upgrade needed to enhance manufacturing productivity.
“Reasonable stability in the monetary policy ambience as the apex bank reverts to playing its conventional roles and deliberately improves forex supply to the productive sector for import of inputs not available locally.
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“The results of the emerging upward surge in global oil prices, domestic oil and gas production, local refining of petroleum products and projected gains of exchange rate unification will promote stability in the forex market and impact manufacturing positively from the second half of the year. This will lead to reduction in the pressure on demand for forex and improve the inflow of export proceeds from oil and gas.
“The ongoing tax reforms and the envisaged bank recapitalization will frontally address the challenges of multiple taxation and poor access to credit that have continued to limit manufacturing sector performance, if successfully implemented.” Ajayi-Kadiri stressed.
