LAGOS, (CAJ News) – UNAVAILABILITY of fuel, poor power supply, policy inconsistency and limited access to credit are the major challenges facing the manufacturing sector in Nigeria.
This is according to findings of a survey conducted by NOIPolls in collaboration with Centre for the Study of the Economies of Africa (CSEA).
Respondents indicated compared to one year ago, the availability of petrol/diesel (80 percent of respondent), power supply (73 percent), policy inconsistency (55 percent), and access to credit (49 percent) had worsened.
In addition, about 78 percent of companies revealed they had been negatively affected by the disparity in foreign exchange rates in the
official and parallel markets.
This cuts across the different company-size categories as large 83 percent, medium 76 percent and small 78 percent indicated this negative impact of forex.
Researchers said this finding was particularly poignant as 52 percent of sampled companies disclosed that they are highly dependent on imported inputs in their production, and only 25 percent indicated that the export market was highly important to their turnover.
Furthermore, a majority of sampled firms (60 percent) decried the lack of support within their current business environment. At least 90 percent of the firms not operating up to their optimum installed capacity, and 45 percent operating below 60 percent of installed capacity.
“However, Nigerian Manufacturers are upbeat and have a positive outlook on the economy over the next one year, with 76 percent expecting economic conditions to improve,” NOIPOlls stated.
– CAJ News