CBN Averts Closure Of 200 Manufacturing Firms Through Forex Access

Lewis D'Amore 2 years ago Foreign Exchange

CBN Averts Closure Of 200 Manufacturing Firms Through Forex Access The Central Bank of Nigeria, CBN, has averted the closure of over 200 companies in the manufacturing sector of the economy through its recent allocation of foreign exchange to the affected industries to bring in their raw materials. Recall that the apex bank had in a bid to stabilise the exchange rate, in protection of foreign reserves, following oil price decline, excluded 41 products from access to the foreign exchange market (interbank foreign exchange market and Bureau de Change).This led to inability of some manufactures to sustain production due to lack of Forex to import raw materials.Consequently, Manufacturers Association of Nigeria, MAN, cried out three months ago that if the dollar scarcity persists, an estimated 200 of its members out of the 1, 'type' => 'bdc',600 surviving companies would close down their operations by the end of the first quarter of 2016. I said there was a need for Paradigm Shift in the way we do business when we categorize manufacturing in this country. A situation where assembling of parts is called manufacturing is no manufacturing. To me, it shouldn’t be exactly manufacturing. What we should consider as manufacturing in this country is resource based industrialization- where we process materials we have in abundance either for the raw materials or for the finished products. That is what i called on resourced based industrialization. MAN is currently collaborating with RMRDC to see how we can fill-in the gaps. By giving us the outcome of their research efforts we can find ways of generating raw materials in Nigeria or having some members of MAN going into the production of certain raw materials that the country needs giving the available resources. That effort is ongoing now and we are also collaborating with other research institutes as well as other tertiary institutions and we have signed memorandum of Understanding with some research institutes in this regard. That is the best way to go. Importation is not the sustainable way to go. The sustainable way to go is resource based industrialization.”www.vanguardngr.com/2016/04/cbn-averts-closure-200-manufacturing-firms-forex-access/

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