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Naira drops to a fresh low of 1060/ USD as MAN attempts a policy reversal.
By; Mary Owolabi
Nigeria’s currency exchange market is in crisis as the Naira continues to depreciate across all market segments. The Naira fell from N1,100 to USD1.0 mid-day in the parallel market before settling at N1,060 in the major trading hubs in Lagos. The official Nigerian Forex Market, the Investors & Exporters (I&E) window, experienced some relief, but yesterday’s rate remains higher than last week’s level, and dealers expect further depreciation.
Nigerian manufacturers want the Central Bank of Nigeria to reverse the decision to lift the ban on 43 items previously excluded from the foreign exchange window. The ban was meant to prevent a job crisis, insecurity, and the collapse of the economy. Mr. Lekan Adewoye, Vice Chairman of the Basic Metal, Iron, and Steel Products sector of the Manufacturers Association of Nigeria, expressed concern.
He said the directive would harm the struggling manufacturing industry, and policy somersaults are a major problem. Honest manufacturers will be forced to shut down, leading to an increase in unemployment.
“Nigerian manufacturers don’t have any competitive advantage over those in other developing countries, at best, what you have is competitive parity, because something has to be an advantage if your competitors don’t have it. And the little incentive that government has provided now it has been removed by the directive from the Central Bank of Nigeria.”
Speaking further on why manufacturers are leaving the country, Adewoye said: “Lack of consultation, I can speak for manufacturers because we always try our best to engage the government on some critical issues and decisions, but when some of these decisions are being taken, manufacturers are not being consulted.
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