ILORIN – Nigerian manufacturers are facing a severe challenge. FX scarcity in Nigeria and unpredictable exchange rates are causing significant financial losses. Businesses cannot easily pay for the imported raw materials they need. This problem arises because materials, bought and processed much earlier, now require payment at current, much higher, exchange rates. Alh. Kamoru Yusuf, who leads the Basic Metals, Iron and Steel Fabricated Metal Sectoral Group of the Manufacturers Association of Nigeria (MAN), shared these concerns. He spoke when the Armed Forces Command and Staff College, Jaji, visited KAM Holding Limited in Ilorin.
Payments Stall as Exchange Rates Climb
The heart of the issue is the persistent FX scarcity in Nigeria experiences. This scarcity makes it very difficult for manufacturers to get the foreign currency needed to pay their international suppliers. Even when they secure the funds, the exchange rate has often worsened. This forces them to pay far more for raw materials than they planned when they priced their goods. Dr. (Mrs.) Iyadunni Yusuf, speaking for Alh. Kamoru Yusuf, explained that this situation creates a direct hit to manufacturers’ finances, as payments for already sold goods become unprofitable.
Government Action Offers Hope Amidst FX Scarcity Nigeria
Despite the damaging effects of FX scarcity in Nigeria, there is some optimism. Manufacturers acknowledge recent government actions. Alh. Kamoru Yusuf specifically thanked President Bola Tinubu for introducing policies. These policies aim to bring stability to the Nigerian economy and curb currency speculation. The manufacturing sector, especially steel producers, hopes that with sustained government support, their industry can recover. A stronger manufacturing sector is vital for the nation’s growth.
Local Jobs, National Security Tied to Manufacturer Success
The economic struggles of manufacturers have wider implications. Col. Mohammed Jaji of the Armed Forces Staff and Staff College highlighted this connection. He praised KAM Holding Limited for creating jobs and empowering the Ilorin community. He stated that such employment directly helps reduce security problems in Kwara State. When businesses thrive and provide jobs, it contributes to a safer environment for everyone. This link shows how the health of the manufacturing industry and issues like FX scarcity in Nigeria affect not just businesses, but also the security and well-being of communities. The discussion also touched on the value of local information in preventing security threats.
By Abiodun Labi
