Unpacking the NOI polls manufacturing survey

A recent manufacturing survey conducted by NOI Polls and the Centre for the Study of the Economies of Africa has shed light on the challenges faced by manufacturers in Nigeria. According to the survey, a staggering 74% of manufacturers find the Nigerian business environment unsupportive, with 85% of them operating at less than 75% of their installed capacity. The main contributing factors to this predicament are poor power supply, limited access to foreign exchange, and the unavailability of fuel. Bell Ihua, the CEO of NOI Polls, discussed these findings in an interview with CNBC Africa. The survey, which was conducted between February and May 2017, captured the sentiments of manufacturers across various sectors including pharmaceuticals, electronics, food and beverages, agro-processing, and agro-aligned industries. Ihua highlighted that besides foreign exchange issues, challenges such as bad road infrastructure, lack of access to credit, policy inconsistency, poor ports infrastructure, and weak demand were also major concerns for manufacturers. He emphasized the critical role of infrastructure, particularly roads, in enabling smooth operations for manufacturers. The state of roads like the East-West road in the South-South region and other key transport routes were identified as vital arteries for economic activity. Despite the current challenges, Nigerian manufacturers remain cautiously optimistic about the future. When asked about their expectations for the upcoming quarters, many expressed hope for a pickup in demand and overall business environment improvement. The recent official data indicating an exit from recession has also buoyed their confidence. However, the road to recovery remains uncertain, with demand still a pressing issue affecting production capacity and supply. Manufacturers look to government interventions and policy reforms to address these systemic issues and create a more conducive operating environment. While challenges persist, stakeholders in the manufacturing sector are resilient and hopeful for a turnaround in the coming months.