LAGOS – Manufacturers Association of Nigeria (MAN) has said the redesign of naira notes, among other factors has negatively affected the economy and tends to worsen employment in the first quarter.
Manufacturers’ index report showed that employment rate will fall below benchmark points to 48.8 points in the first quarter of 2023.
“The employment condition for the next three months dipped below the benchmark points to 48.8 points. Employment decision by manufacturers is so difficult due to the unpredictability and difficulty in macroeconomic movement.
“This is the true opinion of manufacturers. The result is robust and reflects reality – Q1 of every year is usually sluggish and employment decision is hardly completed in the quarter.”
The association also linked this to the continued rise in inflation, high cost of energy, unabated erosion in naira value and difficulty in sourcing forex as well as the harsh effect of the Russian-Ukrainian war.
The Director General, MAN, Segun Ajaiyi-Kadir, lamented that due to the prevailing currency and fuel crises including the acute shortage of forex, manufacturing is becoming an endangered profession.
“However, the continued scarcity of the new redesigned naira notes is quite worrisome.
“With our growth prospects heading further south, we can ill-afford a downturn in our Gross Domestic Product (GDP).
President of MAN, Francis Meshioye, said manufacturers were facing a very critical time as a result of the persisting scarcity of the new naira notes.
Meshioye noted that the hardship being experienced by Nigerians in accessing the redesigned naira notes was hindering the free flow of goods to end users, resulting in huge pile of stock for manufacturers, which could eventually lead to lay off of staff.
“Industries are grinding to a halt because workers are unable to come to work due to absence of cash. We still operate in a highly informal environment.”
MAN report showed that “high cost of energy, insecurity and the lingering Russian-Ukraine War are also among the factors limiting the sector.
The report also showed that the motorcycle sub-group of the motor vehicle and miscellaneous assembly had been facing domestic difficulty following the ban on motorcycles by various state governments.
The association advised that consequent upon the above trends, it is crucially important for government to have a shift toward a better exchange rate management.
“Government should also moderate the rising energy cost via better management of refined petroleum products imported into the country.
“These among other measures would help reduce the current high inflation eating up the working capitals of businesses including manufacturing in the economy.”
For advert placement and inquiries, publication of press releases, and news coverages, please call: 08157778164 or send an email to: rovingpen2023@gmail.com