National President, Manufacturers Association of Nigeria (MAN) Engineer Mansur Ahmed has lauded the federal government efforts at rebounding the production of goods and services in the country through the recent directive to the Central Bank of Nigeria (CBN) to withdraw supply of foreign exchange from the Bureau De Change.
Speaking in Ilorin, Kwara state capital during the 7th Annual General Meeting of the MAN, Ahmed noted that, “Its availability is intended to allow those that are producing good and services to bring in the necessary materials and equipment required in order to produce those goods and services at affordable prices is highly commendable and would assist the locally producing manufacturers to increase their productivity. The decision by the CBN to withdraw supply of foreign exchange from the Bureau De Change is one that the manufacturing sector is fully in support of.
Foreign exchange is not a commodity that should be taken to the market and traded and Its availability is intended to allow those that are producing good and services to bring in the necessary materials and equipment required in order to produce those goods and services at affordable prices. So the art of getting foreign exchange in the market, to me it does not make sense..And yet we know that this process has indeed make huge sum of forex into the BDCs.
“We do not see how that will help the economy. Certainly, if the foreign exchange is made available to our manufacturing companies, more young people will be employed and the companies will operate at higher capacity and more industries will be created while lot of the raw materials needed to make run will be readily available. So, if you have to sell Forex to traders in the market as if it is a commodity, you are denying the manufacturing sector these vital resources.”
Ahmed added, “The law of forex at it was been done is not sustainable because according to the CBN report, the numbers of BDCs exploded between 2005 -11 from 74 from over 6,000. Assuming giving $20,000 to BDCs weekly, this will amount to over $600m of forex weekly going into the market instead of going into industries to produce good and services and create employment. Clearly, that action of the CNB on foreign exchange is most welcome and we commend the federal government on that.”
He also called for the public interest in the development of manufacturing industries through provision of necessary facilities like loans, roads, electricity, and security among other so as to enhance the growth of businesses in the country.
Ahmed who lauded the giant stride of the Kwara branch of association advised them not to relent in its efforts in the bid to enhance growth of businesses in the state.
Also speaking, the Kwara /Kogi state branch of NMA, Bioku Rahmon expressed concern over the high amd fast rising debt profile of the country adding that, the development has weakened the government capacity to build the infrastructures required by local industries.
He also said that, the high and mounting level of insecurity in the country has continued to diminish both foreign- direct and foreign- portfolio investment into the country.
Rahmon also listed some disorders to economic growth in the country like, apparent reluctance of the Nigerian Government to check the Gross Violatikns and operational excesses of the Electricity Distribution Companies, multiple and inundating number of taxes especially from the state and local government and shrinking access to loan opportunities and the very high interest rates in the available loans.
He therefore said that, the association would continue to work with various agencies of the government so as to accelerate the economic development of the country.
