By Bimbola Oyesola

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The Manufacturers Association of Nigeria (MAN) yesterday, described the Central Bank of Nigeria (CBN)’s 60 per cent foreign exchange concession to its members as a welcome development that will aid efforts of government at reviving the industrial sector.
The CBN had on Monday, through a circular entitled, “Foreign Exchange Sales to End Users”, directed all authorised dealers to henceforth dedicate at least 60 per cent of their exchange purchases from all sources (interbank inclusive) to end users strictly for the purposes of importation of raw materials, plant and machinery (manufacturers).
The MAN President, Frank Jacobs, said the association commends the governor and management of the apex bank for the long awaited reprieve, adding that it would enable the sector to determine the exchange rate and stop the volatility.
“If we bid foreign exchange at N1 to a dollar, for example, the bank would have no choice than to sell. Our members should not over bid but rather see this as opportunity to grow the industry and the economy,” he said.
Lamenting that about 56 of the members of the association had been forced to close down within the last one year as a result of the forex crisis, Jacobs noted that the concession was the first time the present government was reacting positively to the yearnings of the sector.
He recalled that MAN had been in the forefront of advocating a special consideration and allocation of foreign exchange to the manufacturing sector of the economy.
“This is in view of its contribution to the development of the economy; job creation, and most importantly, the much needed diversification of the economy, which is one of the priorities of the present administration,” he said.
Jacobs added that MAN, among other demands, which include revisiting the 41 raw materials items banned from the forex list, had charged the CBN to implore commercial banks to give priority attention to forex requirement of manufacturers for importation of raw materials, machines and spares.
He noted that to revive those companies that are moribund, government must reconsider its position on the 41 items ‎as well as subsidise interest rate to the manufacturers to as low as 5 per cent.
“Bearing in mind the contribution of the sector through job creation, ‎government should create a special interest rate regime for manufacturers at a single digit of not more than 5 per cent if we truly want to diversify the economy,” he said.
He equally charged the Federal Government to look into the issue of power and recapitalise the Bank of Industry (BoI)‎ to enable it provide funds for the real sector, noting that all the intervention funds ought to have been channelled to BoI for the development of the industry.