By Merit Ibe
The Manufacturers Association of Nigeria (MAN), has called for more intentional actions from government, focused on supporting productive activities to drive better performance in the remaining quarters of the year.
Director General, Segun Ajayi-Kadir, who made the plea following the recent first quarter 2021 GDP report of the NBS, noted that the economy again witnessed a successive positive growth rate after the 0.11percent recorded in Q4 2020, adding that no doubt, the economy was beginning to recover from the shocks of the COVID-19 pandemic, albeit with the other operating challenges in the economy.
Ajayi-Kadir, however explained that there was no recorded high level of economic activities in the sector that would justify such a growth rate in the quarter.
He noted that the association was mindful of the negative impact of the depreciation in Naira value and acute shortage of forex as they remained huge challenges in the quarter, but posited that it would appear that the reported result may possibly mark the beginning of a tortuous journey back to the path of recovery and meaningful growth.
“Even the aggregate MCCI which increased to 49.1 points in Q1 2021 from 42.1 points in Q4 2020 was still below the 50 neutral base points, which indicated that manufacturers only have a little more confidence in the economy.”
Decrying the prevailing economic circumstances and the struggling state of the manufacturing which he said wa worrisome, the MAN boss urged government to intensify its intervention initiatives and follow through on the cost reduction aspect of ease of doing business, saying there was urgent need to create a more friendly operating environment and deliberately support the productive sector in a strategic manner; Setting priorities along the line of improved infrastructure, competitiveness and stronger industrial linkages.
“Frankly speaking, the 0.40percent growth rate differential is moderate. Caution must be applied, as this performance when examined in the mirror of 2019, results show below par growth rate. Meaning it will amount to error of judgement to ascribe better performance by comparing Q1 2021 with Q4 2020, a year like no other that was heavily challenged by COVID-19 and a period that growth was largely driven by full easing of lockdown, seasonal and festive driven demand for goods and services.”