Local Manufacturers Says CBN Forex Policy Reversal Will Kill Industry

The recent CBN regulation eliminating the restriction on access to 43 products for imports, according to Mr. Lekan Adewoye, Vice Chairman of the Manufacturers Association of Nigeria (MAN)’s Basic Metal Sector, will kill the industry, which is already barely surviving.

This was said by Mr. Lekan in an interview where he revealed the concerns that manufacturers have about the most recent policy implemented by the management of the new apex bank.

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

“We know that imported products are relatively cheaper because manufacturers do not have a 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 the government has provided has been removed.”