CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% - Business

Indigenous manufacturers in Nigeria say
they have recorded a 50% leap in
production capacity as demand and sales
for some of the locally made goods have
risen in recent months, a trend they
attribute to the recent Central Bank of
Nigeria (CBN) policy on foreign exchange.
The manufacturers, at a
press briefing held at the premises of
Obasanjo Farms in Ota, Ogun State
yesterday lauded the CBN policy describing
it as the “greatest game changer for the
fortunes of local manufacturers.” They also
insisted that the apex bank should resist
blackmail attempts by Nigerians, notably
from importers, to rescind the policy, even
in the immediate future.
The briefing was done
on behalf of the Ota based manufacturers
by Messrs Nassos Sidirofagis, a Greek, and
Managing Director of Tempo Food, Paper
Pulp and Packaging Limited and
Oluwasesan Taiwo-Tijani, a Nigerian, who is
Managing Directors of Sren Chemicals
Limited and Polymer Packaging Limited.
The two manufacturers
noted that with demand and sales leaping
above the usual, there had been a
corresponding increase in the production
capacities of local companies as well as
fresh employment opportunities created for
citizens. “In the last three years, it was really
so difficult for us to operate at our full
capacity and to make profit,” said
Sidirofagis. “But the new CBN policy has
been the game changer for the fortunes of
local manufacturers as Nigerian consumers
who can no longer import the items that
are consumed or utilised locally are now
compelled to patronise what we are
manufacturing.
“In fact, the new policy has made
Nigerians to even realise that the quality of
our local goods are far higher than
imported ones. Demand and sales have
gone up. And our production capacity has
also gone up by about 50-70 per cent and
we now have to employ more,” he added.
On his part, Taiwo-Tijani,
said the CBN policy also offers a bright
prospects for local manufacturers to start
expanding their capacities and also plan
ahead for exports. “Now we
can smile a little because what we made in
sales in my company for three months is
what we now make for one month because
most companies that import nylon bags and
inks which we manufacture are no longer
able to do so. They have no option than to
buy from us,” said Taiwo-Tijani.
“The CBN policy has given us the bright
prospects to expand and to export. And we
want the CBN to do everything to sustain
the policy. Now more Nigerians are thinking
of going into manufacturing and if the
policy is sustained we will be producing
about 70 per cent of what we consume in
the nearest future,” he added.
The manufacturers however
demanded that the CBN wade in and
ensure that interest rates are dropped while
waivers are granted on duties on raw
materials or feesstocks

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