Manufacturers expect Nigeria’s GDP to remain positive in Q1’22

As Nigeria enters the first quarter of 2022, manufacturers are cautiously optimistic about the economic outlook for the year ahead. The Manufacturers Association of Nigeria (Manfax) President, Mansur Ahmed, highlighted the need for the government to sustain economic stability and support the productive sector to ensure continued growth. Despite improvements seen in the fourth quarter of 2021, challenges such as foreign exchange supply, inflation, interest rates, and policy changes remain key concerns for manufacturers. Ahmed expressed hope that initiatives like increasing foreign exchange availability and boosting consumer demand through grants could drive growth in the manufacturing sector. However, he cautioned that early political campaigning ahead of the pre-election year could divert attention from critical economic issues. Looking back at the fourth quarter of 2021, Ahmed acknowledged progress in addressing some challenges faced by manufacturers. He cited the Central Bank of Nigeria's focus on improving foreign exchange allocation and the stability of oil prices as positive developments. Additionally, improvements in infrastructure, such as addressing port congestion and transportation issues, have been noted. Despite these advancements, concerns around security, foreign exchange challenges, overregulation, multiple taxes, and energy costs persist as obstacles to growth. In terms of the impact of the upcoming pre-election year on manufacturers, Ahmed emphasized the need for continued engagement with the government to advocate for policies that support business and investment. He highlighted the Manufacturers' Chief Executive's Confidence Index showing an increase in CEO confidence, indicating a level of optimism within the manufacturing sector. The association plans to collaborate with non-governmental partners to ensure economic issues remain a priority during the election cycle. While challenges loom on the horizon, including the potential introduction of new taxes and increased excise duties, manufacturers are hopeful that sustained economic growth will be achievable with the right policies in place. The need for a favorable business environment to stimulate investment and production remains crucial. As Nigeria navigates the economic landscape in 2022, the role of government support, foreign exchange stability, and infrastructure development will be critical for the manufacturing sector's success.