The Manufacturers Association of Nigeria (MAN) has argued on behalf of local manufacturers, urging the Federal Government to give priority to FX allocation to the industrial sector in light of the Federal Ministry of Finance’s announcement that it would receive $10 billion in foreign exchange inflows at some point in the future. These inflows are intended to mitigate the impact of market pressure and spur economic growth.
The union claimed that in order to increase domestic production, foreign exchange involvement for raw materials and industrial machinery is vitally needed in the nation’s manufacturing sector.
Francis Meshioye, the president of MAN, stated that the country’s manufacturing sector and economy are suffering due to exchange rate volatility. He urged the Central Bank of Nigeria (CBN) to expedite the distribution of foreign exchange to the real sector, as this is the only industry that has the capacity to multiply foreign exchange and increase the GDP of the nation.
He says that in order to increase local production and make the country more competitive in the manufacturing of goods, the productive sector should be given preference when the FX arrives.
He emphasized that the government should focus on the manufacturing sector and support Made-in-Nigeria products since, in the absence of strong customer demand, producers will not be able to sustain their businesses.
He continued by saying that the government should prioritize funding for electricity and infrastructure, fight corruption and instability, and implement policies that would encourage indigenous manufacturing rather than the import of completed goods.
A severe foreign exchange shortage over the past few months has forced businesses and manufacturers to fully rely on the black market, where the Naira has repeatedly dropped to all-time lows, widening the gap between official and black market rates, increasing operating expenses, and placing further strain on local manufacturers.
