The Managing Director of Coleman Wires and Cables, Mr. George Onafowokan, has given insight into why the naira appreciation may not bring immediate gain to manufacturers.
He said this is because buyers held back on purchases, waiting for the currency to continue to strengthen. “This led to a waiting game, with speculators hoping to profit from the situation.
Onafowokan gave the view in a statement where he spoke on the impact of the naira’s appreciation on manufacturers.
Expressing optimism about the naira, he said that the naira will appreciate and recover, citing the government’s effort to stabilize the economy, including the return of Foreign Portfolio Investors (FPIs) with over 20 percent interest rate on the Federal Government Bond and Treasury rates.
He also highlighted the rehabilitation of refineries and other initiatives that indicate Nigeria is open for business, not speculation.
Onafowokan however emphasized the need for policies that support manufacturers, such as fiscal policies and other incentives for the industry.
He noted that the Manufacturing Association of Nigeria (MAN) is pushing for policies to ensure manufacturers remain in business.
“Naira appreciation and the government’s efforts to restabilize the currency would help businesses regain their footing. The current situation is a result of speculation about the depletion of foreign reserves, which has led to misconstrued information and instability.
“It would be good if the government can implement policies that support manufacturers and encourage them to tighten everything to balance the forex position. Naira will appreciate more than N1, 000 per dollar, manufacturers will reduce prices when the currency regains its strength in the market,” he stated.
