Nigerian Manufacturers In Dire Straits As Naira Dips By 38.9% In 3 Months

Amidst the persistent decline of the naira against the dollar, manufacturers and members of the organised private sector express deep concerns over the detrimental effects on their operations.

According to findings by Prime Business Africa, the naira has depreciated by 38.9 per cent against the dollar in the last 3 months, with repercussions evident in the local manufacturing landscape.

Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), voiced apprehension, stating, “If the trend continues, there will be more calamity. The serious fear we have is that if this continues, then the sector will suffer. We are not happy that manufacturers are shutting down. We hope that it is not a continuous trend.”

Ezekiel Akhiromen, General Manager of Royal Foam Products Limited, expressed how the falling naira rate negatively impacts their business, remarking, “Of course. It is affecting us, about 80 per cent of what we buy requires forex – the chemicals and other materials come in from outside the country.”

Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, highlighted the possible repercussions, warning, “If things continue the way they are, then businesses will be forced to relocate, even Nigerian businesses are relocating, how much more foreign businesses?”

Segun Kuti-George, National Vice Chairman of the Nigerian Association of Small Scale Industrialists, expressed the present challenges, stating, “Businesses have been downsizing quietly. They don’t have to announce that they are laying off staff. It is not something that makes it to the tabloids. No one will tell you that they are downsizing. They will simply lay people off.”

This consistent devaluation, despite government interventions, raises concerns about the sustainability of the manufacturing sector and underscores the urgency for swift measures to stabilize the foreign exchange market, a crucial factor affecting the Nigerian economy.