Manufacturers task FG on lasting solution to FX scarcity

The Manufacturers Association of Nigeria (MAN), Ogun branch, has called on the Federal Government to take urgent and concerted action to resolve the ongoing foreign exchange scarcity and surge in dollar prices.
Mr George Onafowokan, Chairman, MAN Ogun, made the call at the association’s 39th Annual General Meeting (AGM) on Tuesday in Abeokuta.
The News Agency of Nigeria (NAN) reports that the network has as its theme: “Dollar to Naira Cost: The Nigerian Manufacturers Daily Dilemma: Exploring Strategies for Business Sustainability”.
Onafowokan said that the foreign exchange scarcity and hike in dollar rate greatly hindered manufacturing sector operations, hence affecting business sustainability.
The chairman, also Managing Director, Coleman Wires and Cables Industries Ltd., highlighted how the foreign exchange crisis had severely hampered production capabilities of Nigerian manufacturers.
According to him, its unavailability is a pressing issue for the industry and has forced many manufacturers to resort to the parallel market with high exchange rate figures.
“The situation is worsened following the government’s decision to float the Naira in 2023, pushing the rate to an alarming N1,900 to a dollar by February.
“These fluctuations have significantly contributed to Nigeria’s inflation rate, which soared to 28.92 per cent by December 2023.
“The manufacturing sector endured heavy losses, with about 16 major companies collectively losing N792 billion to naira’s depreciation,” he said.
Onafowokan also pointed out that the lack of access to affordable foreign exchange for importing essential raw materials and machinery had led to a decline in capacity utilisation within the manufacturing sector.(NAN)