The Manufacturers Association of Nigeria (MAN) has cautioned and advised the federal government to reverse its decision to lift the forex ban on some 43 items.
Specifically, the manufacturers warned that the decision would in the long run be harmful to the nation’s economy through looming job losses.
On the 12th of October, the Central Bank of Nigeria (CBN) lifted the ban on the issuance of forex for the importation of rice, vegetable oil, and poultry products among other 43 items.
But speaking to journalists Wednesday on the negative consequence, MAN Vice President (South-West Zone) Dr Kamoru Yusuf, said the policy reversal would spell doom for the nation’s economy.
He said: “I want the federal government to know that the major problem at the moment is the demand that is higher than the supply in the FX market. Therefore, reversal of the 43 items is a policy summersault which is not only dangerous but also very unhealthy for the nation’s economy.”
Yusuf, who is also Chairman Basic Metal, Iron and Steel and Fabricated Metal Products, further said: “Nigeria is currently at a very dangerous situation. Her economy is exposed to numerous challenges and risks and there is no gain saying the fact that the effect of the reversal and removal of ban on the 43 items will create a serious setback on the productive sector; thereby impacting negatively on virtually all other critical areas; such as unemployment, youth restiveness, wrong declaration at the ports, importation and flooding of Nigeria market with substandard products and above all, proliferation of the country with arms and ammunitions.
“As I speak with you, most financial institutions are really confused, and this policy if not quickly reversed, may lead to the distress of some banks while massive loss of jobs is looming. This fear is open for the CBN to verify.”
On way out of the predicament, the industrialist said: “Part of the possible solution is the immediate review of the policy surrounding the operation at the free trade zone in Nigeria, which has been subjected to serious abuses with little or no value addition to the economy nor generating FX to the country.
“It is observed that 60% of the goods coming into the country from Asia are finished products which can be valued around USD800 million of which some of them are substandard.”