The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently address the unsettled $2.4 billion forex forward claims owed to manufacturers in the country. This amount is part of a backlog of $7 billion in outstanding foreign exchange obligations.
According to MAN Director-General, Mr. Segun Ajayi-Kadir, the failure to settle these contracts has had a devastating impact on the manufacturing sector, leading to widespread business closures, job losses, and economic instability.
The situation has been further exacerbated by commercial banks, which continue to charge dollar accounts and impose high interest rates on facilities, thereby increasing currency risk for businesses and resulting in substantial financial losses and operational disruptions.
MAN has urged the CBN to prioritize the sanctity of contracts and expedite efforts to protect the interests of businesses that have acted in good faith. The association has also called for collaboration between the CBN, the Federal Ministry of Finance, and the private sector to create a sustainable framework for resolving outstanding forward contracts and improving foreign exchange inflows.
By resolving these unsettled contracts, the government can help mitigate the negative impacts of the crisis and support economic recovery. MAN emphasizes that prioritizing the survival of the manufacturing sector is crucial for the country’s economic well-being.
