Forex and challenges to manufacturers

Forex and challenges to manufacturers

22/08/ · Resolving the Forex Challenge of Manufacturing Companies. August 22, (THEWILL) – JOSEPH ABANG highlights the imperative of meeting the forex needs of manufacturing companies amid changing monetary policies of the Central Bank of Nigeria (CBN) There is a peculiar challenge facing Nigeria’s economy. It is crystal clear Despite increased economic confidence, as evidenced by local manufacturers on the current Manufacturers Confidence Index (MCCI), there remain concerns regarding the unresolving liquidity situation in the productive sector, particularly regarding access to currency. Local producers are anxious that a recent debate over the regulation of VAT between the Federal and state governments will pay a 22/08/ · August 22 (THE WILL) – JOSEPH ABANG underlines the imperative to meet the foreign exchange needs of manufacturing companies in the context of changing monetary policies of the Central Bank of Nigeria (CBN) The Nigerian economy faces a particular challenge. It is crystal clear. The cause of this is nobody’s fault, to be honest, as it was driven by the economic fallout from the global

Resolving the Forex Challenge of Manufacturing Companies

August 22, THEWILL — JOSEPH ABANG highlights the imperative of meeting the forex needs of manufacturing companies amid changing monetary policies of the Central Bank of Nigeria CBN. It is crystal clear. Almost every country in the world had their share of the economic downturn. However, what is more alarming is that you would expect the manufacturing sector to be the economic driver in a critical period like this, sadly, forex and challenges to manufacturers, that is the same sector that is taking the forex and challenges to manufacturers of the economic downturn in Nigeria.

Growth rate in the manufacturing sector is projected to suffer further decline as operators come under a renewed wave of inflation and foreign exchange scarcity. The sharp increase in headline inflation was driven by a faster month-on-month inflation, which was up 10 basis points to 1. This development, according to the sector leaders, was already taking a heavy toll on the manufacturing companies and it has now been complicated by an increasing difficulty in getting foreign exchange to import foreign components for their production.

In truth, this should not be happening if Nigeria as a country is ready to stabilise the already fractured economy. The pandemic has wreaked havoc on the Nigerian economy, as it has on most other economies around the world.

The difference is that these other countries are doing a lot to help their manufacturing sectors. In fairness to it, the Central Bank of Nigeria recognised the importance of manufacturing: The Apex bank has made it a priority to create an enabling environment for local manufacturing. The CBN has continued to implement accommodative monetary policy steps that will help the economy recover faster by increasing the flow of credit forex and challenges to manufacturers households and businesses in key sectors such as agriculture, information technology, forex and challenges to manufacturers, and manufacturing.

But there is an urgent need to grab the bull by its horns — increasing difficulty to source foreign exchange forex is one major problem that the CBN needs to sort out. A lot has been said by relevant stakeholders, the Manufacturers Forex and challenges to manufacturers of Nigeria MANLagos Chamber of Commerce and Industry LCCI and others have voiced their concerns about the current state of the economy and the manufacturing sector.

In a discussion with the media, Engr. Mansur Ahmed, President, MAN, revealed that manufacturers have not been able to access the required foreign exchange forex from CBN for their operations and about 40 per cent of their forex needs are not met by the apex bank.

Unfortunately, many of these companies have invested millions of naira in the Nigerian economy, even during a rough period when economies and businesses have been hit hard by the COVID outbreak, yet they find doing business hard to come by. Not only will such massive investment boost the Nigerian economy, but also it will create many job opportunities for the citizens. Last year, GBfoods completed a N20 billion Tomato Processing Factory and Industrial Farm in Kebbi, as well as localised the production of their Bama mayonnaise.

The factory is the second largest in Nigeria and the only fully backward integrated plant in ECOWAS — and it has the largest single tomato farm in Nigeria. When all phases of forex and challenges to manufacturers project are finished, the factory will be the largest fresh tomatoes processing factory in Sub-Saharan Africa. But the critical question is — are these companies getting adequate support in return from the government?

The CBN should be looking out for companies who have made Nigeria their manufacturing hub and are never shy from investing significantly in the economy.

There is a need to give a leaning shoulder to such companies. After all, building a strong economy is always a collaborative effort between the government and the private sector.

Nigeria should take a cue from a country like India. The country set a turning point; an economic agenda to spur economic growth and job creation this decade. It immediately swung into action with three sets of policy interventions that could—if enacted in conjunction with actions that manufacturing companies themselves can take—accelerate the growth of manufacturing value chains specifically.

But now, more than ever, is the time to walk the talk. There forex and challenges to manufacturers, therefore, the need for the government to continue to drive the backward integration and resource-based industrialisation agenda cautiously in full consultation with the private sector, while ensuring that in the interim forex is more accessible for manufacturing in the country. Editorial More TRIBUTE BUSINESS GLOBAL NEWS OPINION. Thursday, September 23, forex and challenges to manufacturers, My Account.

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Manufacturers’ confidence in economy improves amid forex, inflation challenges - blogger.com

Despite increased economic confidence, as evidenced by local manufacturers on the current Manufacturers Confidence Index (MCCI), there remain concerns regarding the unresolving liquidity situation in the productive sector, particularly regarding access to currency. Local producers are anxious that a recent debate over the regulation of VAT between the Federal and state governments will pay a 09/09/ · Manufacturers’ confidence in economy improves amid forex, inflation challenges. Despite improved confidence in the economy as shown in the latest Manufacturers Confidence Index (MCCI) by 22/08/ · Resolving the Forex Challenge of Manufacturing Companies. August 22, (THEWILL) – JOSEPH ABANG highlights the imperative of meeting the forex needs of manufacturing companies amid changing monetary policies of the Central Bank of Nigeria (CBN) There is a peculiar challenge facing Nigeria’s economy. It is crystal clear