CONFUSION AMONG MANUFACTURERS BECAUSE OF FOREX SHORTAGE

Some Nigerian manufacturers have voiced concern that they are now in danger of going out of business due to the ongoing lack of foreign currency needed for operations. The situation is becoming worse despite requests for the CBN to prioritize and evaluate the present foreign exchange (forex) policy to permit firms to access forex for the import of raw materials through a dedicated window. Mansur Ahmed, the president of the Manufacturers Association of Nigeria (MAN), bemoaned last week that the real sector is being discouraged by the existing currency policy, which allocates cash at the same rate and window to both importers of completed items and those of raw materials. He bemoaned the paucity of foreign currency and said that “since we don't have a very substantial raw resources base in this nation,” the majority of the raw materials that businesses need is imported.

“Because the dollar has risen too much, we are unable to obtain the foreign exchange to import the raw supplies. The current exchange rate is about N620 to $1. At that exchange rate, how would you be able to create while still being able to sell？ There will be no market. ”We request that the government and its departments reevaluate the situation.

Operators at the MAN branch in Apapa, on the other hand, are finding it tough to make it in the current economic climate.

He criticized the lack of funds for the letter of credit that was filed to the bank for funding, noting that the situation is dire. Many manufacturers, especially those reliant on imports from outside, may end up closing. Due in part to the difficulty in obtaining foreign exchange for the import of raw materials, some businesses have stopped operating, and more are doing so.

He mentioned that some producers were turning to the more expensive illicit market, adding that. We are unable to use forex. You wait months for the banks to respond, yet you only receive a fraction of the foreign exchange you require for your business. We do not receive any currency. I'm not sure where the foreign money sent into our nation is going, but it's not reaching the manufacturers. The banks plainly state no FX when you visit them. Now, the majority of enterprises use the illicit market.

We are discussing equipment instead of raw commodities.

The black market FX rate is high, ranging from #630 to #650. How is it possible to import, sell, and profit at that rate？ It's challenging since the economy won't allow you to just raise your product prices.

The SMEs, according to him, are the most severely impacted since certain major corporations may have their way because of their links to the government.

One factor driving up prices is that few people are bringing in raw materials other than those who are purchasing foreign exchange on the illegal market.

Although some businesses have begun to source their raw materials internally for those who can, he said that many businesses are unable to obtain their resources locally.

Those who can source locally are better off, but the agony has been made worse by insecurity. Additionally, raw material processing has not proven simple.

Manufacturers have been urged for the government to prioritize them, but nothing has been done. If the government recognizes that manufacturers are the backbone of the economy, they will do all in their power to maintain the sector's growth since it will employ many jobless people and lower crime rates. These adolescents cannot indulge while they are kept engaged. Crime.

The nation is still selling oil; where are the profits going？ FX is unavailable to manufacturers, but politicians are distributing it for political purposes.

The government does not appear to be concerned about the nation's economy. There are still many people who steal crude oil, destroy pipelines, and participate in oil bunkering. Even now, we should not be importing petrol. This is absurd. To make a difference, I urge everyone to cast their vote for the appropriate candidates.