- Capacity Utilisation to Grow by 4% in 2017 — MAN
Capacity utilisation in the manufacturing sector is expected to grow by four percent from the 44.8 percent witnessed in the first half of last year, the Manufacturers Association of Nigeria, MAN, has said.
Disclosing this in an interview in Lagos, Director in charge of Economics and Statistics Department of MAN, Mr. Ambrose Oruche, said they were still computing figures for the second half of last year and will be ready by next month.
Oruche explained that with the budget presented by the federal government and the economic outlook in the country presently, the capacity utilisation is expected to improve.
Outlook of the economy
According to him, “Looking at the budget for the year and the outlook of the economy, we are expecting capacity utilisation to go up to 48/49 percent, all things being equal.
“Last year we just had the first half report, we are about to conclude second half because second half just finished in December. We just started the survey for second half. The first half capacity utilisation is about 44.8%.”
He also commended government decision to place a ban of some imported items which he said would have positive effect on the manufacturing sector if properly implemented.
“The manufacturing sector has the capacity to meet the demand as a result of the policy. When we operate below 45-44 per cent capacity it means that there is 56-55 per cent capacity that is lying idle. All that is needed is to deploy the idle capacity then do expansion to increase the capacity. So the capacity is there but issue is Nigerians patronising made in Nigeria products.
“If the restriction is properly implemented, definitely it is bound to have a positive effect on companies operating within that sector.”
He, however, expressed worry about the ability of government agencies to effectively enforce the import restriction policy which he noted will make none-sense of the intention of the policy.
“Another major thing about import restriction is the effectiveness of the implementation because when you restrict some products and you get to the super-market and you find them there, it shows that actually it is not working.
“The authorities in charge, the Customs and all the other relevant agencies must be on their feet and make sure that the policy works because if the policy does not work it will still not have effect.