Manufacturers in the Nigerian economy are finding it difficult to access foreign exchange for the procurement of machines and raw materials for production process.
The Director-General of Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir complained about this problem in an interview with the punch newspaper.
Ajayi-Kadir was adamant that even if commercial banks released the regular forex, it would still be insufficient to purchase the inputs, leading to production process halt and irregularities in business processes and manufacturing cycle.
that pointed out that manufacturers’ funds in Nigeria would be tied up at the point of making requests, and that
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.
“It is important for the CBN 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 is because of the multiplier effect it induces on the other sectors of the economy, the value addition, job creation, tax income for government and quite importantly, increased local production and the positive effect it has on the disposable income of the average citizen.”