MAN lauds 60% Forex allocation

The Manufacturers Association of Nigeria (MAN) has applauded the step by the Central Bank of Nigeria to increase forex sales to manufacturers.

Speaking to journalists, the president of MAN, Mr Frank Jacobs noted that the policy is a welcome development as manufacturers play major roles in determining the foreign exchange rate in the country.

He stressed the fact that selling 60% of forex allocation to the manufacturers will aid their activities greatly.

According to him, if the manufacturers are able to access forex at low rates it will help reduce the cost of production and the prices of the products would be able to compete globally.

The president however called for a review of the 41 items not valid for forex as it will reduce the pressure on the parallel market. He explained that those whose raw materials fall within the 41 items will continue to put undue pressure on the exchange rate because they cannot get funds through the interbank platform

He was however confident that the items would be reviewed in no distance time.

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The Central Bank of Nigeria had on Monday released a circular titled ‘ Foreign Exchange sales to end users’. The circular directed all authorised dealers, including banks, to dedicate at least 60% of their forex allocation to the purpose of importation of raw materials, plants and machineries.