Manufacturers Cry Foul as Banks Clamp Down Over CBN’s Unsettled Forex Debts
Samuel Mobolaji
The Manufacturers Association of Nigeria (MAN) has accused some commercial banks of punishing innocent manufacturers for the Central Bank of Nigeria’s failure to settle outstanding foreign exchange (forex) forward obligations, calling for immediate intervention.
In a strongly worded statement on Thursday, MAN’s Director General, Mr Segun Ajayi-Kadir, urged the CBN to order the unfreezing of manufacturers’ accounts, warning that the ongoing crackdown was crippling production and threatening business continuity in the real sector.
He said manufacturers, who depend on forex to import essential raw materials and machinery, are now facing undue hardship from banks over obligations that have already been met on their part. According to Ajayi-Kadir, the affected manufacturers had paid in Naira—either through cash or credit facilities—for FX, which the banks subsequently remitted to the apex bank, making them compliant under standard practice.
“This troubling trend of account freezes and hostile treatment is unjustifiable,” he said, stressing that manufacturers are now caught in a crisis they neither caused nor deserve. “Our members are being punished for systemic failures beyond their control.”
Ajayi-Kadir cited KAM Industries Nigeria Limited, a leading steel company and MAN member, as a prominent example of the growing crisis. He noted that many other manufacturers are enduring similar ordeals in silence, severely disrupting their operations.
He criticised the banks’ approach, urging them to offer support instead of resorting to punitive actions. “It is unconscionable that the most vulnerable in the value chain—manufacturers—are the ones bearing the brunt of this impasse,” he said.
MAN reaffirmed its willingness to work with stakeholders to resolve the crisis, saying it remains committed to protecting the interests of its members and ensuring a business environment conducive to industrial growth.
The current turmoil stems from a lingering $2.4 billion forex forward backlog owed to manufacturers—a matter MAN first raised in August 2024. The CBN attributed delays in clearing the obligations to ongoing investigations by the Economic and Financial Crimes Commission (EFCC), although it claims to have settled $7 billion in “valid” forex commitments in 2024 alone.
The situation underscores a deeper challenge in Nigeria’s forex market, despite reforms initiated by President Bola Tinubu in 2023 to unify exchange rates and boost investor confidence.
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