Forex Restrictions And COVID-19 Forces 415 Nigerian Manufacturers To Shut Down

Naira 4 Dollar: Manufacturers urge CBN to point remitters to productive  sectors - Peoples Gazette

Yemisi Izuora

The Coronavirus pandemic coupled with Foreign Exchange restrictions by the Central Bank of Nigeria, CBN, has in the last one year forced 415 companies to stop manufacturing.

The Director-General, of the Manufacturers Association of Nigeria, MAN, Mr Segun Ajayi-Kadir, who disclosed this also lamented that supply-side constraints, such as the traffic logjam at the ports slowing down access to imported raw materials, had hampered the growth of manufacturing in the country.

Other challenges are infrastructure, including power transportation acquisition of lands, the multiplicity of taxes and levies from different tiers of government, and inconsistent government policies, he said.

According to him, while addressing journalists at the cake-cutting event on Friday, said manufacturers would be able to thrive if the constraints were addressed.

“However, on our own, we are doing a lot to improve the bottom line of our members. We are linking up with manufacturers across Africa so that we can create a cross-border value chain to develop areas where we have comparative and competitive advantage he added.

“We are also assisting them with the provision of information about the availability of raw materials. We are partnering with different organisations, both within and outside the country.

“We are signing MoU with parastatals of government like SON and NAFDAC. All of these is to improve the quality and delivery of our members’ products.”

Asked how many of the association’s members have closed operations in the last one year, Ajayi-Kadir said, “There was a time that, immediately the central bank restricted forex for 41 items and with the impact of COVID-19, we had tremendous downturn in 415 industries and many of them actually went under.

“But to the extent that they have been able to gradually reopen, I may not be able to calculate. But there was a time that 415 actually went off the radar of manufacturing in the last one year.”

He said in the next 50 years, the association would be more focused on creating resilience, adding, ‘We want to boost our capacity so that in spite of all these debilitating factors surrounding us, we should be able to thrive as a sector.

“We have made some progress in terms of manufacturing; it has not all been tales of woes.”

The MAN boss said he was looking forward to legislation on the patronage of made-in-Nigeria products.

“There is no reason why ministers, and to even start with the National Assembly, should not be driving made-in-Nigeria cars. We have cars that are assembled here.”

The manufacturing sector had continued to show resilience and promising in spite of the limitations said Ajayi-Kadir.

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