Manufacturers laments over-regulation by government agencies
Written by crest887fm on September 11, 2021
The Manufacturers Association of Nigeria has said 95 per cent of local manufacturers agreed that multiple taxes and levies and overregulation by government agencies persisted in the second quarter of this year.
According to its Manufacturers Confidence Index for Q2 2021, manufacturers in the country suffer multiple regulation on a single manufacturing process occasioned by the agencies of the federal, state and local governments.
The MCCI is an index created by the association to gauge the change in quarterly pulsation of manufacturing activities to changes in the macroeconomic ambience and Government policies. The survey covered 400 chief executive officers of MAN member-companies.
MCCI has a baseline index of 50 points which suggests a stationary point in the economy. Any index point above 50 points indicates that manufacturers have confidence in the economy and improvement in manufacturing performance, while any index point below 50 points indicate otherwise.
MAN highlighted challenges such as forex difficulties, unfriendly lending rates, discouraging government expenditure targeted at manufacturers, issues at the port and inefficiency in the backward integration agenda.
However, most of the respondents said the macroeconomic indicators did not have an effect on the capacity utilisation in the sector, volume of production, new investments and employment rate.