Manufacturers are finding it difficult to access the forex necessary to purchase machines, raw materials, others for production.
This was disclosed by the Director-General of Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir, in an interview with Punch.
This statement is coming following the Central Bank of Nigeria’s forex policy banning the sale of foreign exchange to bureau de change operators.
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What MAN is saying
Ajayi-Kadir pointed out that manufacturers’ funds in Nigeria would be tied up at the point of making requests, and that even if commercial banks released the regular forex, it would be insufficient to procure the inputs, causing the production process to be distorted and their bottom line to be shattered.
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He said, “This abysmal allocation to the manufacturers is quite disappointing and unhelpful. It threatens the relapse of the recent gains in terms of the growth numbers in the economy.
“While appreciating the current situation of government in terms of paucity of forex, the strategic allocation of the limited forex stock is key, whilst we also pursue domestic activities that will sustainably generate forex.
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He noted that the CBN needed to go beyond the recent zero allocation of forex to BDCs and intentionally prioritize allocation to the productive sector, in particular, the manufacturing sector. This, he said, is because of the multiplier effect it induces on the other sectors of the economy in the areas of value addition, job creation, tax income for government and quite importantly, increased local production; as well as the positive effect it has on the disposable income of the average citizen.