The Manufacturers Association of Nigeria (MAN) has warned that the Central Bank of Nigeria’s foreign‑exchange allocation process has placed its members in a dire situation. In an interactive session with journalists in Lagos, MAN’s Director‑General, Segun Ajayi‑Kadir, said the manufacturing sector is becoming endangered due to challenges ranging from forex storage to a host of other issues. He urged the government to deliberately address the prioritisation of scarce foreign exchange, stressing that misplaced priorities have caused the sector to suffer most in terms of forex allocation.
Ajayi‑Kadir explained that when manufacturers export and repatriate profits, the funds pass through the CBN, which tracks every kobo entering the account. “You can only retrieve your money at the official rate,” he said, adding that even with the modest incentives offered through the import‑export window, the situation remains painful. After enduring these processes, firms seeking to import raw materials, spare parts, or machinery receive only about five percent of the required funds from the designated deposit banks. Consequently, they are forced to turn to Bureau De Change, where rates are unfavorable, leaving the sector shortchanged and contributing to declining performance.
The MAN chief argued that Nigeria can only emerge from the current forex crisis by bolstering local production of goods that can be manufactured domestically. He called on the government to prioritise the productive sector and encourage manufacturing activities within the country. “There is no way you will get out of the forex crisis if you do not produce locally. What you import is what you need dollars for; if we produce those items in Nigeria, we won’t need dollars to import them,” he said. He emphasized that manufacturing is not just another business venture but a deliberate choice essential for national development. “No developed country exists without a vibrant manufacturing industry,” Ajayi‑Kadir concluded, warning that manufacturing is becoming an endangered profession if current policies persist.
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