At the 17th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Cross River and Akwa Ibom branch, industry leaders raised concerns over the severe impact of foreign exchange (forex) volatility on operations.
Speaking at the event, themed “Innovative Pathways in Manufacturing: Transforming Challenges to Opportunities,” acting Chairman, Mr. Usen Umoh noted that the instability of the naira has significantly increased raw material and production costs, putting manufacturers under immense pressure.
He highlighted the instability of the naira as a major factor driving up raw material and production costs, making it increasingly difficult for manufacturers to sustain their businesses.
Umoh stressed the need for a stable and predictable forex policy, noting that manufacturers are struggling to plan effectively amid the naira’s sharp depreciation, which has fallen by over 50 per cent within a year.
He said, “The manufacturing sector remains the bedrock of economic growth, providing jobs, fostering innovation, and driving sustainable development.”
“Our journey has however not been without challenges, I urge stakeholders to join hands in finding lasting solutions to the challenges facing the sector.
“Let us use this AGM as a platform to share ideas, explore innovative solutions, and renew our commitment to drive the sector forward.
“Without a reliable forex framework, it becomes near impossible to manage costs and maintain competitiveness,” Umoh said, calling for immediate government intervention.
Energy costs, multiple taxes, and difficulties accessing funds further compound the sector’s struggles.
Umoh described manufacturing as the “bedrock of economic growth,” underscoring its role in job creation and innovation. He urged stakeholders to collaborate on innovative solutions to steer the sector through these turbulent times.
Governor Umoh Eno of Akwa Ibom, represented by Deputy Governor Dr. Akon Eyakenyi, reaffirmed the government’s commitment to supporting the manufacturing sector.
He emphasised efforts to improve the ease of doing business in the state and urged manufacturers to seize new opportunities while encouraging corporate social responsibility.
Eno highlighted his administration’s efforts to promote businesses and foster an entrepreneurial culture, encouraging citizens to seize opportunities to drive business growth.
He also called on business owners to pay their taxes and engage in corporate social responsibility projects to improve the quality of life in the state.
Analysts have pointed out that the Central Bank of Nigeria’s (CBN) measures to stabilize the naira have fallen short.
Despite a $4 billion increase in foreign reserves, the currency depreciated from N747.76/$1 in September 2023 to N1,541.52/$1 by September 2024.