The Manufacturers Association of Nigeria (MAN)
on Friday advised the Central Bank of
Nigeria (CBN) to sustain its current directive on forex sales to rebound
output by manufacturers. The President of MAN, Mr Frank Jacobs, told the News
Agency of Nigeria (NAN) in Lagos that the advice became necessary because
the directive would help in strengthening the naira for production purposes.
According to
him, the policy will, in the long run, make machinery and other items more
affordable for manufacturers, which in turn will lead to cheaper goods. “The policy has raised the confidence of manufacturers
because it will boost productive output. It is pleasing that manufacturers and
people who are in business can afford to get dollars easily which will drive
down the price of foreign currencies often caused by speculators. The new
initiative is commendable and it our hope it will not be sabotaged,” he
said.
On the 21st
of February, the CBN directed all banks to open outlets for sale of forex at
all airports to ease forex purchases. The directive has gradually strengthened
the naira, making it exchange at N495 to the dollar on February 23 from the
N520 it sold on February 20 at the parallel market.
Jacobs said
also that since the apex bank had addressed the forex challenges, it should
also compel banks to lend to manufacturers at reduced interest rate. According
to him, the reduction should be exclusive for the manufacturing sector as it is
done in other climes.
He said: “Reducing the interest rate to five percent from the current
14 percent will boost production and generate employment in the sector. The
reduction will revolutionise the sector and reposition the industry to
contribute more to the nation’s GDP.”
It will be
recalled that the CBN in September and October 2016, supported critical
sectors, including the aviation sector with $660million and $867 million,
respectively through the Special Secondary Market Intervention Retail Sales. The
intervention was to enable manufacturers and those in aviation to purchase
industrial raw materials and spare parts needed for operations. (Guardian)
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