Some local manufacturers in the country have expressed optimism of improved capacity utilisation in the 2016 fiscal year following a review of the foreign exchange policy by the Central Bank of Nigeria (CBN).

According to the manufacturers, the review of the apex bank’s stance on the forex policy will stimulate local production and further aid the implementation f government’s diversification agenda as well as job creation efforts.

The manufacturers, who gathered in Ota, Ogun State to discuss the merits of CBN’s policy on their activities acknowledged that the impact of CBN policy on foreign exchange since its inception has doubled their productive capacity with attendant benefits in terms of expansion to meet increasingly higher demands for their products and services.

They emphasised on the importance of the CBN and Federal Government to mitigate challenges facing local manufacturers’ capacity to expand as well as to prevent the Greece experience in Nigeria.

Deputy Managing Director of Tempo Paper Pulp & Packaging Limited, Nassos Sidirofagis disclosed that since the CBN foreign exchange policy came into existence, Tempo has been able to increase its production capacity from 50 to 70 percent.

This he said has impacted on the company’s propensity to increase exports with higher volumes, which will also earn Nigeria higher foreign exchange earnings proportionately.

According to him, the policy has helped manufacturers realise the urgent need to expand production due to the increasing demands for their products adding that its company has concluded plans to start an expansion project due to increasing demands between 2016 and 2017.

“We have since developed capacity to also attract foreign investors, who we believe are exploring investment opportunities in our organisation. Therefore on all sides this is a win-win situation for Nigeria and local manufacturers as this would make Nigeria an exporting economy.

Speaking on the challenges faced by local manufacturer’s to expand; he charged the government to focus more on manufacturers by reducing duties local manufacturers pay on raw materials.
He advised that the policy must be in place for upward of a minimum of 2 years, to facilitate full development of local capacity to attract investors.

Another local manufacturer, Group Operation Manager, SREN Chemicals Limited, Oluwasesan Taiwo-Tijani explained that the CBN forex policy has forced several companies who are import-driven to patronise SREN Chemicals, saying, “this impacted on our sales and our productive capacity has increased by 30 per cent.”

He appealed to the Federal Government to retain the policy with a view to sustain local content development and to turn Nigeria into an Export dependent country.