Russian-Ukraine war: MAN calls for economic stability framework

COMFORT EKELEME

As the Russian-Ukrainian war continues to have an effect on economies around the world, the Manufactures Association of Nigeria (MAN) has said that it is important for the government to intentionally create an anticipatory policy framework that will facilitate automatic stabilization of the economy in the event of domestic or global shocks.

In its Manufactures CEOS Confidence Index Quarter 2 of 2022, MAN stated that the effect of the Russian-Ukrainian war clearly underscored the popular maxim that the world has become a global village.

MAN said the occurrence of an incidence in a part of the world, notwithstanding how specific we may think, can actually become a global issue.

“Therefore, apart from the need for ardent management of global peace, the series of global occurrences and the lessons learned to demand that national Governments should begin to take drastic measures to manage these phenomena proactively going forward.

“Undoubtedly, phenomena such as the China-America trade war, the Asian and Global Financial crises, and the challenges thrown up by the COVID-19 pandemic and now, the Russian-Ukraine war call for the development of sustainable national anticipatory policy measures.

“Cumulatively, these challenges interplayed to shape the direction of the performance of the manufacturing sector in the second quarter of 2022.

“It is therefore important for the Government to intentionally create an anticipatory policy framework that will facilitate automatic stabilization of the economy in the event of domestic or global shocks while addressing the aforementioned familiar operating challenges limiting the performance of the sector,” MAN said.

The Aggregate MCCI score of 54.6 points for the quarter under review, which is above the 50 baseline points by 4.6 points, shows that manufacturers still have minimal confidence in the economy, with the expectation of improvement in the operating environment.

For instance, the performance of Bauchi/Benue/Plateau and Rivers zones with index scores below the baseline points is a serious cause for concern.

Also, the business ambiance in the second quarter was no doubt beset by numerous macroeconomic, regulatory, and externally induced challenges, compounded by the lingering backlashes of the COVID-19 pandemic and the ongoing Russian-Ukrainian war.

Clearly, the resultant effects of these challenges continue to manifest in the escalation of global inflation, the shortfall in the global supply chain followed by the rise in energy cost, fertilizer and fertilizer inputs, wheat grain, etc.