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Nairaland Forum / Nairaland / General / Business / CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% (20029 Views)
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CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by jam04(m): 1:13pm On Jan 24, 2016 |
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/ 25 Likes 1 Share |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by ODVanguard: 1:17pm On Jan 24, 2016 |
21 Likes 1 Share |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by HiddenShadow: 1:23pm On Jan 24, 2016 |
I hope Sun newspapers have not eaten Aisha's rice. If local production has increased why are people still losing their jobs. 29 Likes 1 Share |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by OkutaNla: 1:28pm On Jan 24, 2016 |
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. 62 Likes 2 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Boss13: 1:31pm On Jan 24, 2016 |
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. 35 Likes 2 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Chinazaekperem5: 1:34pm On Jan 24, 2016 |
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. 118 Likes 12 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by porka: 1:34pm On Jan 24, 2016 |
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? 2 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Jorussia(m): 1:39pm On Jan 24, 2016 |
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. |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by resty4(m): 1:40pm On Jan 24, 2016 |
Obasenjo nonsense. 1 Like |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Chinazaekperem5: 1:46pm On Jan 24, 2016 |
Jorussia: 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 69 Likes 5 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Chinazaekperem5: 1:48pm On Jan 24, 2016 |
porka: 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. 35 Likes 1 Share |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Nobody: 1:50pm On Jan 24, 2016 |
Good news for local manufacturers. 10 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by DropShot: 1:52pm On Jan 24, 2016 |
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. 44 Likes 2 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Godfullsam(m): 1:54pm On Jan 24, 2016 |
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 ![]() 33 Likes 3 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Boss13: 2:16pm On Jan 24, 2016 |
Jorussia: 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. 17 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Boss13: 2:21pm On Jan 24, 2016 |
Chinazaekperem5: 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? 12 Likes 2 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Chinazaekperem5: 3:00pm On Jan 24, 2016 |
Boss13: 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. 42 Likes 10 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by WisdomFlakes: 3:11pm On Jan 24, 2016 |
Some people will not be happy to hear this. ![]() 4 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by asEdeyHOT: 3:21pm On Jan 24, 2016 |
Lalasticlala Will this get to FP or is just bad news for today? 2 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by stagger: 3:41pm On Jan 24, 2016 |
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! 35 Likes 3 Shares |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by kennyman2000(m): 3:52pm On Jan 24, 2016 |
Hmmmm |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by pinbar(m): 4:03pm On Jan 24, 2016 |
Very encoraging development! 1 Like |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by afroniger: 4:57pm On Jan 24, 2016 |
This truly is a very encouraging development. Mods, why isn't this on frontpage? Seun, Mynd44, Lalasticlala, Ishilove |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by OkutaNla: 5:07pm On Jan 24, 2016 |
grandstar: 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/
5 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by grandstar(m): 6:06pm On Jan 24, 2016 |
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 4 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by miqos02(m): 9:30pm On Jan 24, 2016 |
cool |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by passionate88: 9:30pm On Jan 24, 2016 |
Nice |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by tiamiyukunle69(m): 9:30pm On Jan 24, 2016 |
Correct!!! Made in Nigeria rocks |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by ednut1(m): 9:31pm On Jan 24, 2016 |
I smell lies 4 Likes |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by pat077: 9:32pm On Jan 24, 2016 |
Good |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by Zico5(m): 9:32pm On Jan 24, 2016 |
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. 1 Like |
Re: CBN Forex Policy: Local Manufacturers Happy As Production And Sales Leap By 50% by doveda: 9:33pm On Jan 24, 2016 |
HiddenShadow: It is true. Thecable had the same news some days ago 2 Likes 1 Share |
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