Business is booming.

Manufacturers seek end to forex, energy crisis

The Manufacturers Association of Nigeria (MAN) have tasked the Federal Government and monetary authorities to address the foreign exchange and energy crises responsible for the unfavourable movements in manufacturing indicators.

Mr Segun Ajayi-Kadir, Director-General, MAN, made the call at the Commerce and Industry Correspondent Association of Nigeria (CICAN) workshop and recognition of individuals and firms on Thursday in Lagos.

The News Agency of Nigeria (NAN) reports that the event had as its theme: “Manufacturing: Despite FX and Energy Crisis”.

Ajayi-Kadir said that the frontline challenges of inadequate foreign exchange and energy crisis dipped the manufacturing growth output from 5.8 per cent in the first quarter of 2022 to 3.0 per cent in the second quarter.

He said these challenges massively affected manufacturers that were already confronted by inclement operating environment, compounded by the COVID-19 pandemic and the current Russian-Ukrainian war.

According to him, manufacturing indicators such as capacity utilisation, contribution to real Gross Domestic Product (GDP) investment, employment, cost of production, competitiveness among others were also negatively impacted.

He noted that increase in cost of energy pushed up global inflation which affected the cost of importation across the world, including Nigeria.

He added that with the limited foreign exchange inflow from crude oil sales, foreign exchange demand pushed over the bounds of supply and contributed to the depreciation in Naira value.

The MAN DG stressed that the challenges must be adequately addressed to arrest further degeneration in the performance of the sector.

below content

Quality journalism costs money. Today, we’re asking that you support us to do more. Support our work by sending in your donations.

The donation can be made directly into NatureNews Account below

Guaranty Trust Bank, Nigeria

0609085876

NatureNews Online

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More