Federal government considers opening special foreign exchange window for manufacturers

NIGERIA'S federal government has announced plans to create a separate and special foreign exchange window for exporting manufacturers in a bid to enable them gain easy and quick access to hard currency so their operations do not suffer.

At the moment, there is a chronic scarcity of dollars in Nigeria, the  Central Bank of Nigeria (CBN) being unable to meet demand, thus forcing manufacturers to go to the parallel market. Aware of the inconvenience this creates, trade and industry minister Niyi Adebayo, hinted that the federal government will be looking to do something about the problem.

Speaking at the Manufacturers Association of Nigeria Export Promotion Group’s (Maneg) annual general meeting in Lagos, the minister reacting to a plea asking the government to support the sector. Manufacturers want a special forex window to be created by the CBN to put an end to a situation where operators go to the parallel market.

According to the manufacturers, other countries like South Africa were already embracing such proposal as a means of encouraging manufacturing activities. In his response, Mr Adebayo said his ministry would initiate steps towards helping exporting manufacturers cushion the impact of the current forex crisis.

Mr Adebayo said: “Maneg is a formidable group. Write to me and I will see how I can use that as reference to engage the CBN. As you know, the CBN is a monster of its own.

“I like the idea that you came up with, having a different window for manufacturers. The president just set up an economic team and we have been meetings. Write to me and we will see what we can do.”

In recent years, the acute shortage of foreign exchange in Nigeria has constituted a major operational nightmare facing manufacturers in the country. Manufacturers have lamented acute shortage of foreign exchange amid a lack of locally available raw materials and machinery.

In its most recent Manufacturers Chief Executive Officers Confidence Index, the Manufacturing Association of Nigeria said its members had resorted to survival measures amid a worsening business climate. Manufacturing is very weak in Nigeria as Africa as a whole only accounts for 1% of global output.