From Merit Ibe
The Manufacturers Association of Nigeria (MAN) has pressed the Central Bank of Nigeria (CBN) to intervene urgently in the forex forward contract crisis by directing commercial banks to unfreeze manufacturers’ accounts affected by unresolved transactions.
MAN expressed alarm at banks’ harsh treatment of its members, which it deems unjust as manufacturers did not cause the issue.
MAN Director General Segun Ajayi-Kadir emphasised the critical role of forex access for importing raw materials and machinery, stating, “Recently, our members have reported significant unwarranted complexities and undue high-handedness by the banks.”
He noted cases like KAM Industries Nigeria Limited, a steel manufacturer facing a forex dispute, adding, “This rather unfortunate treatment of private business is only the reported one, and there are several others undergoing similar harrowing experiences.”
Ajayi-Kadir clarified that manufacturers pay naira to banks, which remit funds to the CBN, completing their obligations. He noted, “Our members have played their part and the commercial banks should play their own part. Our members should not be harassed by the banks.”
He urged the CBN to act, saying, “The Central Bank of Nigeria should direct the concerned commercial banks to immediately unfreeze the accounts of innocent manufacturers in relation to the vexed issue of forex forwards.”
MAN called for swift redemption of the $2.4 billion outstanding forex obligations and dialogue to resolve the crisis, with Ajayi-Kadir stating, “We remain open to foster dialogue between the commercial banks and affected members of the association.” He warned that continued delays risk de-industrialisation, stressing collaboration for economic stability.
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