Forex Restriction Will Affect Industries Negatively - MAN

In News 2019-08-01 14:00:09
Forex Restriction Will Affect Industries Negatively - MAN
Forex Restriction Will Affect Industries Negatively - MAN

By Dipo Omoware


The DG, Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadiri has criticised the CBN’s move to restrict access to foreign exchange for importing dairy products.


Mr Ajayi-Kadiri was on Nigeria Info’s Morning Crossfire and while he applauded the Central Bank for encouraging local production, he cited there were better ways to achieve this.


“MAN shares this objective, as a matter of fact, we call ours result-based industrialisation; we want to rely more on local content but the area of departure with the CBN is in terms of the haste, not having a clear pathway to achieve this objective and thirdly, not taking into cognisance the importance of being on the same page with the major stakeholders”


According to him, if the CBN enforced this ban, it would “achieve the reverse” and have devastating effects on the economy.


“What you will do is open up the border for an influx of dairy products that you cannot determine their safety; also, the milk produced in the country will be more expensive and out of reach of the ordinary citizens”


He said other economic implications would be “downsizing” and “loss of jobs” and called for the CBN to avoid creating artificial scarcity.


Dairy Specialist, Department of Animal Science of the University of Ibadan, Dr Olushola Olorunnisomo described the CBN policy as “a back-door ban on the importation of dairy products.”


He told Nigeria Info that Nigeria as a country does not “have the system to produce the capacity of milk its population requires.”


“The kind of animals and the kind of system that can sustain the (population) does not come from moving (cattle) up and down the country; you have to settle these animals down to make sure that they have the right environment and the right kind of feeding.”


Mr Ajayi-Kadiri summed the solution lies in the CBN and stakeholders having a “convergence of opinion and strategy” and “agreeing on a backward integration time table that will fill the requirement gap.”