Forex Volatility Emerges as a Major Concern for Manufacturers, Says Mr. Usen Umoh

Forex Volatility – An Existential Threat to Manufacturing

The Manufacturers Association of Nigeria (MAN), represented by Acting Chairman Mr. Usen Umoh, has highlighted foreign exchange market volatility as a major threat to its operations during the association's 17th Annual General Meeting (AGM) in Uyo.

Impact of Forex Volatility on Manufacturing

• Umoh pointed out that instability in the Naira has driven up raw material and production costs.
• He called for a stable and predictable forex policy to allow manufacturers to plan effectively.
• Additional challenges include rising energy costs, tariffs, and difficulties accessing funds.

He stated, “The manufacturing sector remains the bedrock of economic growth, providing jobs and fostering innovation.” He urged stakeholders to collaborate on solutions for persistent issues facing the sector.

Government Support for Manufacturing

Governor Umoh Eno of Akwa Ibom, through his Deputy Dr. Akon Eyakenyi, underscored the importance of the manufacturing sector for job creation and industrialization. Eno reaffirmed commitment to improving business environments and encouraged community engagement in corporate social responsibility.

Naira Depreciation and Foreign Reserves

• The Naira has depreciated by over 50% in the past year, despite interventions from the Central Bank of Nigeria (CBN).
• Current data shows that the Naira's value fell from N747.76/$1 to N1,541.52/$1.
• Foreign reserves have increased by $4 billion yet have been insufficient in stabilizing the currency.

These dynamics underscore the ongoing challenges faced by the manufacturing sector amid forex fluctuations.