Why CBN Forex Policy Reversal will Kill Struggling Manufacturing Industry –Manufacturers

The Vice Chairman of Basic metal sector of the Manufacturers Association of Nigeria (MAN), Mr Lekan Adewoye, has said the new CBN directive removing the restriction on access to 43 items for imports will kill the manufacturing industry that is barely struggling to survive.

Mr Lekan stated this during an interview on TVC Business where he bared the minds of manufacturers regarding the latest policy from the new apex bank’s management.

In his words, “For items that can be produced in Nigeria, such manufacturers ought to be encouraged. This directive will further kill the manufacturing industry that is already struggling to survive.

“Some of our members who have outrightly invested in backward integration will now start to regret this move, because everyone who can assess forex will claim to be an importer, forcing sincere manufacturers to close shop and increasing the numbers of jobless persons.

“Maybe we have one or two items on that list that are of national importance, I don’t know but not saying that all the 43 items should be allowed to come into the country. Because those who have invested, what are they going to do with their investment?

“We as manufacturers want the government to do what is necessary because at the end of the day, a lot of manufacturing companies will shut down and when they do, the aftermath effect will be job losses”.

Nigerian manufacturers cannot compete with their peers abroad

He further noted that Nigerian manufacturers do not have the competitive advantage to compete with their counterparts across West Africa and other continents in the world.

He said, “We know that imported products are relatively cheaper because manufacturers do not competitive advantage over those in other developed countries. Even when you come closer to West Africa, we don’t have any competitive advantage, at best what we have is competitive parity.

“And the little incentive government has provided has been removed”

It would be recalled that the CBN recently lifted the ban on access to Forex for imports of 43 items imposed under the era of former CBN Governor, Godwin Emefiele.

The apex bank noted that the policy aims to boost liquidity in the Nigeria Foreign Exchange market. It also noted that it will intervene from “time to time” when there is a scarcity of forex in the market.