MAN Urges CBN to Unfreeze Manufacturers’ Accounts Amid Forex Crisis
By Merit Ibe
Manufacturers Demand Immediate CBN Intervention
The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to take urgent action regarding the ongoing forex forward contract crisis. The association specifically requests that commercial banks be directed to unfreeze manufacturers’ accounts affected by unresolved foreign exchange transactions.
Unjust Treatment of Manufacturers
MAN has expressed serious concern about what it describes as harsh and unjust treatment of its members by commercial banks. The association maintains that manufacturers bear no responsibility for the current forex issues yet are facing severe consequences.
Segun Ajayi-Kadir, Director General of MAN, emphasized the critical importance of foreign exchange access for manufacturers: “Recently, our members have reported significant unwarranted complexities and undue high-handedness by the banks.”
Case Studies Highlight the Problem
The association cited specific examples, including KAM Industries Nigeria Limited, a steel manufacturer currently embroiled in a forex dispute. Ajayi-Kadir noted, “This rather unfortunate treatment of private business is only the reported one, and there are several others undergoing similar harrowing experiences.”
Manufacturers Fulfilling Their Obligations
MAN clarified the transaction process, explaining that manufacturers pay naira to banks, which then remit funds to the CBN. “Our members have played their part and the commercial banks should play their own part. Our members should not be harassed by the banks,” Ajayi-Kadir stated.
Call to Action
The association urged immediate CBN intervention: “The Central Bank of Nigeria should direct the concerned commercial banks to immediately unfreeze the accounts of innocent manufacturers in relation to the vexed issue of forex forwards.”
Economic Consequences of Delay
MAN called for swift resolution of the $2.4 billion outstanding forex obligations and proposed dialogue to address the crisis. Ajayi-Kadir warned of potential de-industrialization if the situation persists, emphasizing the need for collaboration to maintain economic stability.
The Director General concluded: “We remain open to foster dialogue between the commercial banks and affected members of the association.”
Full credit to the original publisher: The Sun