The Manufacturers Association of Nigeria (MAN) has raised the alarm that the Central Bank of Nigeria’s (CBN) decision to remove the ban on 43 items on foreign exchange restriction, will lead to a looming job crisis, insecurity, and outright collapse of the nation’s economy.
The Vice Chairman of the Basic Metal, Iron and Steel Products sector of MAN, Mr. Lekan Adewoye, stated this while featuring on a TVC Business Program, on Tuesday.
According to him, the new CBN policy is capable of collapsing many industries.
“The news came as a surprise to manufacturers who are still struggling to stay in business, CBN did not ban the importation of these items in 2015, the apex bank only put a restriction on the importation of these items.
“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.
“The problem is about policy somersaults, some of our members who have out-rightly 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 increase the numbers of jobless persons.”
“Nigerian manufacturers don’t really have any competitive advantage over those in other developing countries, at best, what you have is competitive parity, because something has to be an advantage if your competitors don’t have it. And the little incentive that government has provided now it has been removed by the directive from the Central Bank of Nigeria.”
On why manufacturers are leaving the country, Adewoye said: “Lack of consultation, I can speak for manufacturers because we always try our best to engage the government on some critical issues and decisions, but when some of these decisions are being taken, manufacturers are not being consulted.
“Even when the 43 items were put on the restriction list, there was no consultation. It was just at the end of the day, that we felt that to a reasonable extent, the decision was in the interest of manufacturers, but there were a couple of items on that list, that some manufacturers used at that time, and some of those manufacturers were also affected and the government is taking a decision to remove the entire items on that list without proper consultation with the Manufacturers Association of Nigeria, (MAN) to even have an idea of what effect will this have on their businesses.
“I want to assure you that many industries will shut down very soon and this will lead to loss of jobs and insecurity will be alarming in the country. Nigeria has all it needs to produce Iron Rods and other items on this list, opening up the market will be a disincentive to manufacturers that continue to put their resources and investment into growing the industry.”
On the country’s projection and outlook for manufacturers, Mr. Adewoye urged the federal government, concerned Ministries, Departments, and Agencies (MDAs) to carry manufacturers along in decision-making and policy formulation adding that, “with the full support of the government, the manufacturing sector will improve in capacity, create more jobs and ultimately support the government in the actualization of an industrialized nation.
