Indigenous manufacturers in Nigeria say
they have recorded a 50% leap in
production capacity as demand and sales
for some of the locally made goods have
risen in recent months, a trend they
attribute to the recent Central Bank of
Nigeria (CBN) policy on foreign exchange.
The manufacturers, at a
press briefing held at the premises of
Obasanjo Farms in Ota, Ogun State
yesterday lauded the CBN policy describing
it as the “greatest game changer for the
fortunes of local manufacturers.” They also
insisted that the apex bank should resist
blackmail attempts by Nigerians, notably
from importers, to rescind the policy, even
in the immediate future.
The briefing was done
on behalf of the Ota based manufacturers
by Messrs Nassos Sidirofagis, a Greek, and
Managing Director of Tempo Food, Paper
Pulp and Packaging Limited and
Oluwasesan Taiwo-Tijani, a Nigerian, who is
Managing Directors of Sren Chemicals
Limited and Polymer Packaging Limited.
The two manufacturers
noted that with demand and sales leaping
above the usual, there had been a
corresponding increase in the production
capacities of local companies as well as
fresh employment opportunities created for
citizens. “In the last three years, it was really
so difficult for us to operate at our full
capacity and to make profit,” said
Sidirofagis. “But the new CBN policy has
been the game changer for the fortunes of
local manufacturers as Nigerian consumers
who can no longer import the items that
are consumed or utilised locally are now
compelled to patronise what we are
manufacturing.
“In fact, the new policy has made
Nigerians to even realise that the quality of
our local goods are far higher than
imported ones. Demand and sales have
gone up. And our production capacity has
also gone up by about 50-70 per cent and
we now have to employ more,” he added.
On his part, Taiwo-Tijani,
said the CBN policy also offers a bright
prospects for local manufacturers to start
expanding their capacities and also plan
ahead for exports. “Now we
can smile a little because what we made in
sales in my company for three months is
what we now make for one month because
most companies that import nylon bags and
inks which we manufacture are no longer
able to do so. They have no option than to
buy from us,” said Taiwo-Tijani.
“The CBN policy has given us the bright
prospects to expand and to export. And we
want the CBN to do everything to sustain
the policy. Now more Nigerians are thinking
of going into manufacturing and if the
policy is sustained we will be producing
about 70 per cent of what we consume in
the nearest future,” he added.
The manufacturers however
demanded that the CBN wade in and
ensure that interest rates are dropped while
waivers are granted on duties on raw
materials or feesstocks

http://sunnewsonline.com/new/cbn-forex-policy-production-capacity-sales-leap-by-50-for-local-manufacturers/

Just here to read comments.

[img]http://i./8yRpcDf2tbzoI.gif[/img]

I hope Sun newspapers have not eaten Aisha's rice. If local production has increased why are people still losing their jobs.

It's obvious the forex policy is essentially geared at stimulating the local manufacturing sector. The hitherto carte-blanche importation policy, whereby goods that can be sourced locally are imported at the expense of locally produced alternatives, is simply unsustainable. Though I also think the government should as a matter of urgency begin to upgrade infrastructure, especially power, to encourage more local industry and consequently create more jobs for Nigerians.

Absolute Nonsense. So we import polythene bags in this country - what a shame. I support the CBN stance. It discourages lazy importers and middle men, who would refused to put resources in place to create product, but to encourage the import of mundane products into the country.

Let these importers go source for dollars themselves, we, the consumers, would be left with no choice but to patronize local manufacturers in view of cheaper prices.

Buhari is exactly what Nigeria needs right now

No matter how good the intentions of a leader is, the vested interests in the country will frustrate any policy to stop import dependence culture.

Only a ruthless man like Buhari can withstand these vested interests.

It is very painful that as of 2016, we import plastic bags, toilet rolls, and toothpicks.

A culture that encourages the importation of used clothes rather buying new locally made ones is not only unsustainable, it is very foolish.

We will not see the effect of this policy in the short term but in the medium to long term, we will start reaping the benefits through job creation, foreign and domestic investment in local production capacity and a general behavioral shift.

I support the president in his effort to revive the local economy. It will be initially painful but the outcome will be pleasant


CC Lalasticlala please share the news.

The CBN Forex policy will definitely promote the fortunes of local manufacturers, but the fortunes of importers have nosedived this past few months that CBN started the policy. In my own opinion, i think the CBN should relax the policy in order to accommodate the importers,since we still import most of commodities that we consume as a nation.

Obasenjo nonsense.

Jorussia:
The CBN Forex policy will definitely promote the fortunes of local manufacturers, but the fortunes of importers have nosedived this past few months that CBN started the policy. In my own opinion, i think the CBN should relax the policy in order to accommodate the importers,since we still import most of commodities that we consume as a nation.

This policy is aimed at correcting that behavior.

We cannot be importing most of the commodities we consume. It is unsustainable.

Those importers should start producing those commodities they import.

How can you be importing toothpick, plastic bags etc?

I support the government on this

porka:
Which policy again?

Is it the same one that is being reversed?

How will they cope when the naira is finally devalued by the CBN?

If the CBN devalues the Naira, then it also presents opportunities for local producers to export their goods as their goods will become cheaper at the international market.

Good news for local manufacturers.

Gradually, PMB will take us there.

Will it be easy? Absolutely not.

Will it be challenging? Absolutely yes.

Will it be painful? Oh yes.

Will we get there eventually? Surely, if we support the government and remain patriotic.

"Give me six hours to chop down a tree and I will spend the first four sharpening the ax" - Abraham Lincoln.

This is exactly what PMB is doing.

Wailers will not be happy with this development. They are the major importers... They will soon claim it was an attempt by Buhari to marginalise them

Jorussia:
The CBN Forex policy will definitely promote the fortunes of local manufacturers, but the fortunes of importers have nosedived this past few months that CBN started the policy. In my own opinion, i think the CBN should relax the policy in order to accommodate the importers,since we still import most of commodities that we consume as a nation.

The policy should not be relaxed. We are all screaming about employment or loss of jobs. Countries that encourages importation, create more jobs for those producing countries they import from. Additionally, we import a lot of mundane and little things, like toothpicks, needles, plastic chairs, chicken and eggs etc. things we can get from our backyards.

We hear all different kind of lexicon - Italian made, London made, China made, America spec etc

Why do we hate our country so much, yet we want it to sustain us.

Chinazaekperem5:


If the CBN devalues the Naira, then it also presents opportunities for local producers to export their goods as their goods will become cheaper at the international market.

Our products are currently cheap. International buyers are not complaining.

Let me tell you. Immediately the CBN devalue our currency, these FX speculators will jack the price to N400/dollar. They are only interested in the margin they can make and because we have desperate importers, whose goods already have been blacklisted by CBN, looking for dollars, they will purchase at any price to pass the cost to the consumer. Now, as a rational individual, if there is a competing local manufacturer, would you not patronize the manufacturer because his product will now be cheaper?

Boss13:


Our products are currently cheap. International buyers are not complaining.

Let me tell you. Immediately the CBN devalue our currency, these FX speculators will jack the price to N400/dollar. They are only interested in the margin they can make and because we have desperate importers, whose goods already have been blacklisted by CBN, looking for dollars, they will purchase at any price to pass the cost to the consumer. Now, as a rational individual, if there is a competing local manufacturer, would you not patronize the manufacturer because his product will now be cheaper?

Bros most of your argument is largely speculative.

The export market will become even more vibrant if the goods become cheaper at the international market. Surely, buyers will always go for cheaper alternatives.

As long as the current policy encourages local production and improves quality and capacity, it will offset any near term problems created by speculators who might try to take advantage.

We can no longer continue to import more than we export. The current world economic model punishes import dependent countries and rewards those who are able to optimise production that meet local demand and creates export opportunities. Of course, we cannot produce all our wants but the majority of commodities can be locally sourced. Importing Chicken, eggs, toothpick, paper, rice is foolish and daft

Remember that I mentioned that the policy is aimed at ensuring a behavioral change. I dont care if these importers become bankrupt. Importation should not be a career but should be utilised to facilitate local production through the sourcing of equipment, spares and some raw materials. When the sector is made up of people who import to drive demand of goods that can be made locally, then it becomes problematic.

Some people will not be happy to hear this.

Lalasticlala

Will this get to FP or is just bad news for today?

This January alone, our company secured a huge order as a result of imports being too expensive for the client concerned and we have had promising discussions with other clients. Emefiele...ride on!

Hmmmm

Very encoraging development!

This truly is a very encouraging development. Mods, why isn't this on frontpage?

Seun, Mynd44, Lalasticlala, Ishilove

grandstar:
There are bound to. be positives about the foriegn exchange restrictions but the negatives far outstrip them.

Those who desire to export will be disappointed because they have to sell their forex earnings at the official rate.

I wanted to go into export but was discouraged by this policy.

For our industries to really grow, interest rates must come down to single digits first.

This will make them bold enough to borrow massively and import world beating machinery that would boost their productivity and give them an edge over imported items

The president did say in his last televised interview that priority and exceptions would be given to local manufacturers with respect to forex.

He said, and I quote:

http://www.ngrguardiannews.com/2015/12/buhari-rejects-naira-devaluation-says-no-clue-on-chibok-girls/

The Central Bank of Nigeria will sit with factories and ask what essential raw materials and machinery they need, and provide forex.

There are bound to. be positives about the foriegn exchange restrictions but the negatives far outstrip them.

Those who desire to export will be disappointed because they have to sell their forex earnings at the official rate.

I wanted to go into export but was discouraged by this policy.

For our industries to really grow, interest rates must come down to single digits first.

This will make them bold enough to borrow massively and import world beating machinery that would boost their productivity and give them an edge over imported items

cool

Nice

Correct!!! Made in Nigeria rocks

I smell lies

Good

Good, we all know things will be better as time goes on. That is why we voted Buhari and we have faith in him to lead us to the promise land. It is well with Nigeria.

HiddenShadow:
I hope Sun newspapers have not eaten Aisha's rice. If local production has increased why are people still losing their jobs.

It is true.


Thecable had the same news some days ago