The Manufacturers Association of Nigeria (MAN) has recommended the implementation of upper and lower bands on the exchange rate to boost the performance of the manufacturing sector and the overall economy.
MAN’s Director General, Segun Ajayi-Kadir, suggested managing the floating exchange rate system within acceptable bounds while prioritizing forex and credit allocation to manufacturers.
The association also called for reduced reliance on Bureau de Change (BDCs) and effective management of their operations.
Ajayi-Kadir acknowledged the challenging outlook for the manufacturing sector in the first half of the year but projected some measured improvements in the second half.
To enhance sector performance, MAN proposed utilizing cost savings from fuel subsidy removal for production-focused policies, overhauling the power sector, and promoting the patronage of made-in-Nigeria products.
Other recommendations included encouraging local sourcing of raw materials, implementing Executive Order 003 to prioritize made-in-Nigeria products in government contracts, and leveraging the opportunities provided by the Electricity Act 2023 to improve energy security.
The Central Bank of Nigeria was urged to develop a sustainable framework for credit interventions in the manufacturing sector and mobilize commercial banks to provide long-term, single-digit interest loans to facilitate economic growth.
