The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently resolve the lingering forex forward contracts issue, warning that the crisis threatens the survival of Nigerian manufacturing companies and the livelihoods of thousands of workers.

According to Segun Ajayi-Kadir,  Director General of MAN, “The non-redemption of $2.4 billion forward contracts has triggered severe crisis for the manufacturing sector, leading to substantial financial losses, operational disruptions, and job losses. We implore the CBN to prioritize the sanctity of contracts and explore avenues to resolve outstanding obligations.”

Ajayi-Kadir emphasized that the manufacturing sector has borne the brunt of this crisis, with a staggering 108.7% increase in job losses in 2023 alone. “The situation is grim, and companies face the prospect of downsizing or shutting down operations completely. We urge collaboration between the CBN, Federal Ministry of Finance, and private sector to develop a sustainable framework for resolving outstanding forward contracts.”

MAN analysis reveals that companies have incurred over N1.5 trillion in forex-related transactions losses, contributing to poor performance.

“The erosion of trust among foreign suppliers and financial institutions has further compounded challenges, affecting foreign financial flows and investment,” Ajayi-Kadir noted.

MAN promotes manufacturing sector competitiveness, job creation, and GDP growth through research, development of new technologies, and environmental sustainability.

The association urges the government to prioritize the survival of the manufacturing sector to mitigate negative impacts and foster economic recovery.

“Time is of the essence. We must end this impasse to prevent further damage,” Ajayi-Kadir stressed. “By honoring forex forward contracts, the CBN can restore trust, stabilize the manufacturing sector, and promote economic growth.”

The Manufacturers Association of Nigeria is the premier advocacy voice of Manufacturers that promotes Manufacturing sector competitiveness, job Creation, and Gross Domestic Product through commitment to research development of new technologies and environmental sustainability in Nigeria.

The Association was founded in 1971 as a company limited by guarantee. The Association is known for its promotion of made in Nigeria products as a catalyst for industrialization and economic prosperity in Nigeria.