I would suggest that the President, when sworn in, should set specific deliverables to be accomplished within the first 100 days in office. There are low-hanging fruits, there is also the long-term perspective for stabilizing and growing the economy.
With this background, the new government should not be under any illusion about the need to stop the drift and hit the ground There is also the evident inadequacy of needed infrastructure and the myriad of macroeconomic challenges that has constituted binding constraints to the performance of the economy So, if the problem lingers, the new administration should swiftly address it, without throwing away the baby with the bath water. The latest addition that is disrupting the economy in a profound manner is the redesign of the national currency and the attendant scarcity, an otherwise excellent monetary control measure by the CBN, but for the inexplicable poor management of the transition process. Today, government debt to GDP ratio is 37% from 34.5% last year. We have unemployment, which is prevalent amongst the youth at 33.3%, even as the GDP annual growth rate is about 3.52%. On interest rate, the MPR is 17.5%, while the lending rate is 27.63%, to most manufacturers, the latter is the norm. Let us take a look at the key economic indicators: The inflation rate is 21.82% and the Naira exchanges for the dollar officially at N460 and on the streets, which is by far the most patroniaed by economic actors is about N750. We need to reset our priorities and stop the hemorrhage. I think that there should be a realisation that the economy is in a parlous state and needs a quick rejig. Since the Association’s area of interest is the economy, I will dwell more on that.Ĭan you please, share with us the suggested strategies in MAN’s Blueprint the incoming government should be rolling out as key economic indicators in the short run?
Now to the real issues, the overarching priorities are security and the economy. Seeing that the new administration settles down and makes the needed appointments in good time and selecting the right people. So, we should expect that there is minimal downtime in governance. Effective in terms of ensuring that the transition committee works well with the incoming team and the new administration is able to hit the ground running. We can then talk of a smooth and effective transfer of governance and handover to the new administration.
To start with, we should expect that the transition should take place in a peaceful atmosphere and all the contestations should follow established and legal processes. This shows that CEOs of manufacturing industries have less confidence in the economy.Ĭonsequently, we have expectations, especially now that the first phase of the elections has come and gone. In the latest survey for the fourth quarter of 2022, the aggregate index score declined from 55.4 points in Q3 2022 to 55.0 in Q4 2022. We observe diffusing factors like current business conditions and business conditions for the next three months current employment conditions and employment conditions for the next three months and current production levels and production levels for the next three months. We mirror their response to the movement in the macro economy and government policies using primary data that is mined through a direct survey of 400 CEOs. Our expectations, as manufacturers, are coming against the backdrop of a reduction in the Manufacturers CEO Confidence Index (MCCI) in the last quarter of 2022.Īs you are aware, the MCCI is a quarterly survey of MAN to gauge the pulse of the operators and trends in the manufacturing sector.
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