VenturesNow

Nigerian manufacturers’ confidence declines in Q2, 2023. Here’s why

Published

1 year ago

August 31, 2023

A recent survey has shown that the confidence of many Chief Executive Officers (CEOs) in Nigeria’s manufacturing sector declined in the second quarter of 2023 (Q2’23).

More than 63 per cent of manufacturers under the aegis of the Manufacturers Association of Nigeria (MAN) said that capital expenditure by the government did not encourage productivity.

According to the quarterly study, manufacturers’ opinions on changes in the macroeconomic environment showed that roughly 63.1 per cent of those polled disputed that government capital spending boosted manufacturing sector productivity, 23.9 per cent agreed, and about 13.1 per cent were unsure.

Also, MAN observed in the study that the MCCI’s aggregate index score fell by 1.4 points to 52.7 points in Q2 2013 from 54.1 points in Q1 2013, which is also 2.3 points fewer than the 55.0 points registered in Q4 2012.

In response to the survey results, the director general of MAN, Segun Ajayi-Kadir, remarked that “government capital investment should address the challenges of economic infrastructure like as roads, electricity, water, etc. that support industrial sector firms.

“The absence of economic infrastructure contributes significantly to the high cost of the operating environment which obstructs the development of manufacturing in Nigeria.”

He added that “Sequel to the above trends, it is highly expedient that the government strives to ensure the harmonization of fiscal and monetary policies that will pave the way for a stable macroeconomic environment needed to promote productivity in the manufacturing sector and improve the ease of doing business.”

Related Topics:Featured Manufacturer Nigeria

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

12 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.