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Production, Distribution Costs Rise By 17.3%

September 8, 2023

The production and distribution costs of businesses in the manufacturing sector rose by 17.3 per cent in the second quarter of this year, according to Manufacturers Association of Nigeria (MAN).

In its latest aggregate Manufacturers CEO’s Confidence Index (MCCI), the association said the cost in Q2 was a slowdown from the 24 per cent increase witnessed in the preceding quarter.

“Amidst the harsh business-operating environment evidenced by poor macroeconomic indices, the underperformance was largely driven by the slow recovery from the cash crunch, high cost of energy, high transportation cost and partially by the abrupt removal of subsidy that took effect towards the end of Q2,” the report said.

It said the economic turmoil disrupted the manufacturing value chain, escalated cost of manufacturing operations and resulted in reduction in manufacturing patronage.

The MCCI is a quarterly research and advocacy publication that measures changes in the pulse of operators and trends in the manufacturing sector, in response to movements in the macro-economy and government policies, using primary data mined through direct survey over 400 CEOs of MAN member-companies.

 

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