Manufacturers association of Nigeria releases maiden CEO's confidence index

The Manufacturers Association of Nigeria recently released its maiden CEO's Confidence Index, shedding light on the current state of the country's manufacturing sector. With over 200 CEOs surveyed, the first-quarter reading came in at 51.3 points, indicating that the sector is slightly above the minimum threshold. Mansur Ahmed, the President of the Manufacturers Association of Nigeria, joined CNBC Africa to discuss the findings of the report. The CEO's Confidence Index (MCCI) is a quarterly index that aggregates responses from CEOs in the manufacturing sector. In contrast to the Purchasing Managers' Index (PMI), which focuses on current operating conditions, the MCCI provides insights into CEOs' perceptions of current conditions and their expectations for the future. Ahmed explained that while the PMI measures the perception of purchase and managers, the MCCI looks more broadly at the perceptions of CEOs in the sector. The MCCI tracks factors such as current manufacturing conditions, employment conditions, and future expectations. In terms of macroeconomic performance, Ahmed noted that the manufacturing sector is still facing challenges, with confidence levels just slightly above 51%. While there is some optimism for the future, current levels remain low. The report highlighted several key recommendations to improve the manufacturing environment. These recommendations include policy measures and administrative actions to address issues such as foreign exchange availability, port access, electricity supply, and infrastructure development. Ahmed stressed the need for sustained efforts to enhance the business environment for manufacturers, particularly in areas like access to funds and cost of financing. Improving capital expenditure, implementing measures to support local production, and addressing credit conditions for small and medium manufacturers are crucial steps to revitalize the sector. The report underlines the importance of creating a supportive ecosystem that encourages growth and innovation in the manufacturing industry. In conclusion, the CEO's Confidence Index offers valuable insights into the challenges and opportunities facing the manufacturing sector in Nigeria. By addressing key issues and implementing strategic recommendations, the industry can overcome obstacles and drive sustainable growth in the future.