The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently intervene in the ongoing crisis surrounding unsettled foreign exchange (forex) forward contracts, by directing commercial banks to unfreeze the accounts of manufacturers unjustly caught in the web of unresolved transactions.
Expressing deep concern, MAN decried the increasingly harsh treatment meted out to its members by certain commercial banks over unmet forex forward obligations, an issue the association says manufacturers neither caused nor should be punished for.
In a statement, Segun Ajayi-Kadir, Director General of MAN, highlighted the centrality of forex access to the survival and productivity of Nigeria’s manufacturing sector, noting that manufacturers depend heavily on foreign exchange for the importation of raw materials, machinery, and essential production inputs not available locally.
However, Ajayi-Kadir disclosed that recent developments have revealed a troubling pattern of heavy-handed actions by banks, which threaten to cripple manufacturing operations across the country.
“Recently, our members have reported significant unwarranted complexities and undue highhandedness by the banks.”
