By Merit Ibe, [email protected]
The Manufacturers Association of Nigeria (MAN) has projected that improved economic performance in the first quarter (Q1) of the new year would depend on government’s ability to sustain the current relative economic stability.
The association also said the performance would largely depend on government’s efforts to support the productive sector and ensure security of lives and property.
President Mansur Ahmed, who made the assertion in the association’s 2022 economic outlook added that improvement in economic growth would also depend on sustained increase in crude oil price and proper allocation of foreign exchange (forex) to the productive sector.
“Growth of real sector’s Gross Domestic Product (GDP) is expected to remain positive in Q4 2021 and Q1 2022.
“Growth of manufacturing sector is expected to remain positive in Q4 2021 but may slow in Q1 2022 but still within the positive quadrant.
“With the suspension of foreign exchange supply to the Bureau De Change segment of the market, the commercial banks would have to be effective in its allocation to drive production in the quarters.
“Manufacturing performance will improve if forex is made available to the industrial sector for importation of raw-materials and machine that are not locally available and the disposable income of Nigerians is enhanced.
“More focus is expected to be given to local raw-materials development through Backward Integration and Resource-based industrialisation initiatives,” he said.
The MAN president noted that as the year preceding the election year, greater attention would be paid to more of political issues than economic.
As a result, he stressed that government’s drive for revenue would intensify, the cost of doing business would further increase and the informal sector would experience growth.
Ahmed advised firms that do business with government to be wary and ensure payment for jobs done and supplies made were obtained.
“The passive posture towards COVID-19 protocol and management, if sustained without lockdown, will further strengthen the journey of the economy and the manufacturing sector to the path of full recovery,” he said.