•Says 2025 outlook at crossroads of optimism, reality checks

By Yinka Kolawole

Despite the prevailing macroeconomic and operational challenges embattling manufacturing companies in Nigeria, the Manufacturers CEO Confidence Index (MCCI) survey has revealed a moderate improvement in the perceptions of manufacturers on the macroeconomic and operating environment in the fourth quarter of 2024 (Q4’24), compared with the previous quarter (Q3’24).

This was revealed in the result of the Q4’24 MCCI survey by the Manufacturers Association of Nigeria (MAN) obtained by Vanguard yesterday.

The survey showed a marginal rise of 0.5 point in the MCCI to 50.7 points in Q4’24 from 50.2 points in Q3’24, representing the first improvement in the aggregate MCCI since Q1’24.

MCCI is an index constructed by MAN to measure changes in quarterly pulse of manufacturing activities in relation to movement in the macroeconomy and government policies, by aggregating the views of CEOs of key manufacturing companies on changes in the economy.

It has a baseline index of 50 points, any index point above 50 points indicates manufacturers’ confidence in the economy while any index point below 50 points indicates otherwise.

However, the report also shows a downward review of manufacturers’ expectation for the first quarter of 2025 due to the prolonged harsh macroeconomic environment and the predicted slowdown of business activity in the first month of 2025.

Speaking on the report, Director General of MAN, Segun Ajayi-Kadir, said that the 2025 outlook for Nigerian manufacturers is at the crossroads of optimism and reality checks.

He stated: “Against the backlashes of the macroeconomic environment in 2024, this report ends on a moderate expectation for 2025.

“In specific terms, the manufacturers’ outlook for 2025 stands at the crossroads of optimism and reality checks. 2025 is a pivotal year and the outcome will be crucial for this most significant sector.

“The year 2025 is a critical period where government must lead by example by intentionally ramping up domestic industrial production and patronizing Made-in-Nigeria to further reduce the forex demand pressure.”

Ajayi-Kadir added that the manufacturing sector is on its last breath and it should be clearly noted that the future of the country will continue to hang in balance unless the plights of manufactures are adequately addressed with appropriate interventions.

He, therefore, urged the government to implement policies that will restore macroeconomic stability, achieve robust economic growth, enhance the business environment and improve the well-being of all citizens.