I read rider on this forum that MAN (manufacturers association of Nigeria) saying many companies would close shop due to the FX policy of government. For me this is a misplaced statement from man.

As unauthodox as it may seem this is a time for Nigeria to boost its local industries. This is like a protectionist regime imposed by the government for local manufacturing to take advantage of by governments refusial to devalue.

I was in kaduna yesterday and met with one of sokoto state government officials, he told me he was coming back from inoson motors HQ to discuss the possibility of supplying 800 sedans to the state government (and am very sure other states are looking towards that direction too).
My fear is does inoson motors have the capacity to service this sudden interest in their motors. So rather than MAN complain on government FX policies they should encourage their members to seize the opportunity. I expect inoson motors to drag CBN top officials to their plant - just like dangote did to his refinery - and secure commitment from the CBN to prioritise them if they choose to request FX for expansion of operations.

I read an article once in the Harvard business review about international businesses in China, the author was complaining about how it takes more than 6 months to obtain a 1 year business permit in China! (You think that was just because of bureaucracy? ). That was their government delibrately protecting local companies from foreign competitors. Little wonder Chinese companies are number 1 in all sector of their economy.

And those that feel devaluation provides some sort of silver bullet, if we devalue then what?

Devaluation is meant to reduce the pressure on governments scarce dollar reserves by freeing it up for "other purposes". But by banning non essential items (call controlled devaluation) government has effectively freed up FX for essential purpose or "other purposes" like importation of raw materials and spare parts for local manufacturing. So let's not get it twisted, devaluation of the naira won't bring down the price the perfume (Montale - black auod) I coughed out 39k naira to buy online to 19k naira.

Lets here your thoughts.

MAN is right and you fail to understand the real issue here. Your approach is like attacking an issue from the middle. For MAN to produce they need raw materials and most of these raw materials are sourced from overseas since for some of these raw materials we don't have the capacity to produce much. The govt should wake up and drive this by giving incentives, tax breaks for pole, companies to set up industries in the country, they shouldn't just fold there hands and remind us that crude oil price is falling so there is nothing they can do. There need to be an enabling environment for bizness to thrive. Do you know how long it takes to register a company name in Nigeria or how many funny taxes you pay to community, local and state govt? At a time like this, we need a sound economic blueprint to help address this forex issue. Truth is the confidence in the Nigerian economy is at an alltine low. Go check the weekly CBN report on dollars sales by banks, you will find out that most foreign portfolio investors are pulling their funds out if Nigeria and this is also putting pressure on the naira.
You made mention of your fears for innoson capacity to handle the deluge of requests coming their way, thats the same with MAN.Is there local capacity to handle their demand now?won't it be appropriate if the govt is doing something to boost this by creating that environment?