Naira drops to 1060/$, manufacturers worried about policy change

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The currency exchange crisis in Nigeria intensified as the Naira’s value continued to drop. In the parallel market, the Naira fell from N1,100 to USD1.0 before stabilizing at N1,060 in major trading hubs in Lagos, even though it had been around N1,025 in the previous month.

While the official Forex market saw a slight improvement, with the exchange rate at the Investors & Exporters (I&E) window hovering at N790.61/$1, it remained considerably higher than the previous week’s level, leading dealers to anticipate further depreciation.

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This situation coincided with calls from manufacturers for the reversal of the Central Bank of Nigeria’s decision to reintroduce 43 items previously banned from its foreign exchange window.

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Manufacturers argued that this ban was essential to prevent a potential job crisis, increased insecurity, and economic collapse.

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Via Vanguard, Mr. Lekan Adewoye, the Vice Chairman of the Basic Metal, Iron, and Steel Products sector of the Manufacturers Association of Nigeria (MAN), expressed concerns about the policy changes.

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He emphasized the need to support manufacturers producing items within Nigeria and warned that the directive could harm an already struggling manufacturing industry.

He highlighted issues with policy reversals and the lack of consultation with manufacturers in decision-making processes, which has led some manufacturers to consider leaving the country.

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