Manufacturers Lose N1.5 Trillion to Forex Transaction Delays, Says MAN Chief



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The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, revealed in an exclusive interview with The PUNCH on Monday that member companies have suffered losses amounting to at least N1.5 trillion over the past six months due to forex-related transactions.

Despite the Central Bank of Nigeria’s claim of clearing all valid forex requests, Ajayi-Kadir stated that many manufacturers still have pending dollar requests, some of which have been left unattended for an extended period.

The CBN had announced the successful clearance of all valid foreign exchange backlogs, settling obligations amounting to $7 billion, as stated by the bank’s Acting Director of Corporate Communications, Sidi Ali.

However, Francis Meshioye, President of MAN, contradicted the CBN’s claim, noting that forex requests by manufacturers remained uncleared, resulting in adverse effects on businesses.

A stakeholder meeting chaired by the Minister of Industry Trade and Investment was held to address the issue, but it failed to provide comprehensive solutions. The CBN, which appointed Deloitte Nigeria to oversee the settlement of forex backlogs, deemed some requests invalid, sparking further concerns among manufacturers.

Ajayi-Kadir estimated the losses incurred by manufacturers at N1.5 trillion in the last six months, primarily due to interest payments accrued from delays in settling outstanding forex forward contracts. Other factors contributing to the losses include excess import duty payments and the rapid depreciation of the naira.

He emphasized the detrimental impact of the situation on the manufacturing sector, warning that more factories may shut down if the issue remains unresolved. While litigation could be a last resort, Ajayi-Kadir urged for a swift resolution to prevent further harm to the national economy.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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