60 percent forex allocation to manufacturers, a hoax – MAN

Manufacturers Association of Nigeria, MAN,on Wednesday disclosed that Central Bank of Nigeria’s approval of 60 percent foreign exchange allocation to manufacturers to bring in their raw materials, plants and machinery, as a hoax.

President of MAN, Dr Frank Jacobs, said: “As far as I am concerned, it hasn’t worked.  Our members have not benefited from it. “I came close to calling it a hoax in the sense that it was something they dangled on our face without substance,” he said.

Recall that more than two months ago, CBN directed  commercial banks and other authorised dealers in the foreign exchange (FX) market to ensure that they channel 60 per cent of total FX purchases from all sources (interbank inclusive) to  manufacturers strictly for the purpose of importation of raw materials, plant and machinery.

The apex bank said it took the decision following its review of returns on the disbursement of FX and observed that a negligible proportion of FX sales were being channelled towards the importation of raw materials for the manufacturing sector.