With the Central Bank of Nigeria (CBN) adjusting foreign exchange rates in search of uniform framework, local demand has hit $1.16 billion on the back
Local manufacturers have also warned that many factories may shut down if obligations of over one year to foreign suppliers are not met. Some of the producers lamented that locally sourced materials were being indexed and priced at the same rates for which they would have been imported, thus stalling backward integration agenda.
The CBN had, on July 3, adjusted the naira rate from N360/$1 to N380/$1 at the Secondary Market Intervention Sales . Similarly, on July 7, the regulator adjusted the exchange rate at the Investors and Exporters’ window, also known as NAFEX, according to data on FMDQ website, by 5.54 percent to N381 per dollar from N361/$, sparking speculations that it was set to officially unify the exchange rates.
According to the Manufacturers Association of Nigeria , while the move is gratifying, the apex bank should urgently put measure in place to minimize intensity of the pain by considering outstanding obligations of manufacturers from the second quarter 2019 till date. If not done, MAN said many factories might close and CBN stimulus packages to the manufacturing sector would suffer setback, just as cash flow crunch would become worse.
The first objective, according to MAN, is to limit the short-term pains until efficiency gains materialise by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialise. Director-General, Lagos Chamber of Commerce and Industry , Muda Yusuf said the development had created new dimensions to supply chain problems, which many manufacturers had suffered in the peak of the lockdown.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Forex scarcity: Bank slashes card spending limit|p style=
Read more »
Forex scarcity: Bank slashes card spending limit|p style=
Read more »
Dethroned Kano Emir, Sanusi reveals how Naira can be stabilized - Daily Post NigeriaFormer Emir of Kano, Sanusi Lamido Sanusi, has urged the Central Bank of Nigeria, CBN, to fund the bureaux de change, BDC, across the country in order to
Read more »
CBN to unify exchange rates, pegs naira at 379/$|p style=
Read more »
Police arrest cleric for allegedly raping, impregnating two teenage sistersEbenezer Ajigbotoluwa also allegedly defrauded the mother of the girls two million naira for providing her 'spiritual cleansing'
Read more »