FG Mulls New FX Window for Exporting Manufacturers

October 17, 2022
FX Window

By Adedapo Adesanya

The federal government has said it will begin steps towards creating a separate and special foreign exchange (FX) window for exporting manufacturers.

The Minister of Trade and Investment, Mr Niyi Adebayo, dropped this hint during the Manufacturers Association of Nigeria Export Promotion Group’s Annual General Conference in Lagos.

The Minister was reacting to a plea by the manufacturers, asking the federal government to support the sector by allowing operators to access forex through a special segment created by the Central Bank of Nigeria (CBN).

This, according to the manufacturers, will put an end to a situation where operators go to the parallel market to source forex.

Drawing a parallel with South Africa, the pleading manufacturers called on the federal government to consider this type of proposal as a means of encouraging manufacturing activities.

In his response, Mr Adebayo said his ministry would initiate steps towards helping exporting manufacturers cushion the impact of the current forex crisis.

He said, “Manufacturing Association of Nigeria Exporting Group (MANEG) is a formidable group. Write to me. I will see how I can use that as a reference to engaging the CBN. As you know, the CBN is a monster of its own.

“I like the idea you came up with, having a different window for manufacturers. The president just set up an economic team, and we have been meeting. Write to me, and we will see what we can do.”

The shortage of FX in Nigeria has constituted a major operational nightmare facing manufacturers in the country, with exporters, aviation operators, and telecommunication companies raising worries.

This has threatened the base of operation as it has halted service delivery and driven up the cost of operation, leading to a ripple effect of high prices and unavailability for the end consumers.

At the moment, the CBN has a special FX window for Investors and Exporters (I&E). In the segment, the Naira is exchanged with the Dollar at about N440/$1 and in the parallel market, it goes for N743/$1.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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