With the Federal Ministry of Finance’s disclosure of receiving $10 billion forex inflows any time from now targeted at cushioning the effect of market squeeze and stimulate growth in the economy, the Manufacturers Association of Nigeria (MAN), has made a case for local manufacturers, urging the Federal Government to prioritise FX allocation to the industrial sector.

The association said FX intervention for raw materials and machinery for industries are needed critically in the country’s manufacturing sector to boost local production.

MAN’s President, Francis Meshioye, said the exchange rate volatility is taking a toll on the country’s manufacturing sector and the economy, urging the Central Bank of Nigeria (CBN) to hasten FX distribution to the real sector, as it is the only industry that can multiply FX and enhance the country’s Gross Domestic Product (GDP).

According to him, when the FX comes, the productive sector should be favoured to boost local production and improve their competitiveness in products manufacturing.

He stressed that the government should shift attention to the manufacturing sector and patronise Made-in-Nigeria products as there is no way manufacturers will remain in business if their goods are not well patronised by the target consumers.

He went on to add that the government needs to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentives that would make domestic production more attractive as against the importation of finished products.

Due to acute shortage of FX in the last few months, businesses and manufacturers have turned fully to the parallel market, where the Naira has fallen to record lows repeatedly, widening the difference between the official and parallel rates, worsening operational costs and putting additional pressures on local manufacturers.