The Manufacturers Association of Nigeria (MAN) in its recent report as it contained in the Manufacturers Confidence Index (MCCI) disclosed that the situation worsened in the fourth quarter despite the FX injection by the Central Bank of Nigeria (CBN) into the market through BDCs and other interventions, manufacturers still find it extremely difficult to source FX for importation of raw materials and machinery that are not locally available.
According to the MCCI’s survey report which covered 400 Chief Executive Officers of MAN member-companies which was created to gauge the changes in manufacturing activities quarterly as a result of changes in the macroeconomic ambience and Government policies stated that Manufacturers have been facing Foreign exchange challenges since the second quarter of the year 2020 due to significant decline the in inflow of FX into the country.
The report said 82% of MAN CEOs interviewed affirmed that the rate at which manufacturers source FX has not improved. This is an unwelcome development and an indication that there is the need to adopt a customized approach to manage the limited available FX (forex) considering that FX shortage may not improve anytime soon, it was added.
“There is therefore the need for Government to continue to drive the backward integration and resource-based industrialization agenda cautiously in full consultation with the Private Sector while ensuring that in the interim FX is more accessible for manufacturing in the country.
Due to difficulty in accessing forex, Association therefore urged government through CBN grant concessional FX allocation at the official rate to manufactures for importation of productive inputs that are not locally available
Also government should carry out swift approval of Usage of FX sourced outside the official market for manufacturers and Fastrack the unification of all FX windows in the country