VampireeM:
Some politicians have access to forex from their sitting room at the official rate meanwhile manufacturers are crawling for forex just to import machineries and co.. PMB and his economic team needs to hide their heads in shame.. Just in a year and some months PMB took over power, almost a million Nigerians have lost their jobs due to their archaic policies..
#IncompetentGovt!

ideology:
CBN has been changing policies almost every quarter, very bad no stabilily

The same CBn will provide Forex for mecca travellers but will not provide Forex for manufacturers, who does that in recession, unless there are cabals and powers beyond him

Izonpikin:
tired of the cluelessness...

ideology:


I thought Gej was the clueless one.

Enjoy your change

Izonpikin:
..i am anti buhari admin...

all i just want to see is true federalism practiced...

ideology:
it may not work, Nigeria today is even more fragmented than Nigeria as at 1970


Interest is too much, eg Rauf was blasted for visiting Fayose, same yoruba, same region, imagine that!

Izonpikin:
then we get a nuclear bomb and start from the beginning...

mare23ayo:
MadamExcellency blueto SharkTank

is he saying he can't convince the CBN governor who is from the East to release forex? this is a manufacturing company for crying out loud.... The CBN is Autonomous for fund release so I believe there's more to it that we don't know

carmag:


I'm ain't home based bro, but I do follow up all the happenings down there..




back to the matter

are you saying if it's religious matters they'll be told there's shortage of dollars...pls respond to this....

jjman2322:
Ok i feel like its time for me to come in with some much needed clarifications..

We are in the manufacturing business (medicine), and we have been hit hard, probably lost around $500,000 this year..
Let me explain:


#1. First of all, NO MACHINERY can be made locally. We use high end machines that cost $100,000's that are only made in China & India.. Has Nigeria even managed to make a TV, talkless of heavy duty machines..

#2. Raw materials for our pharmaceutical production are 100% imported. To make ampicillin capsule you need ampicillin powder. To make amoxicillin capsule, you need amoxicillin powder, etc. These powders are not made in Nigeria. Heck, there are only a few of these factories in the whole world. The factory to make ampicillin would cost tens of millions of dollars, and you wouldnt be able to compete with Chinese prices.

#3. Let me get to how manufacturers source forex. For Machine,raw material imports, you either get funds by :

a. BILL FOR COLLECTION (Where the supplier ships the machine/raw materials to us, and we submit documents to CBN to pay them dollars),
b. LETTER OF CREDIT (Where CBN deducts or naira, and send dollars to the supplier's bank in advance.)

#4. We have dozens of BILLS FOR COLLECTIONS pending across all banks in Nigeria. Basically what this means is that for example a supplier sent a container of ampicillin powder, value of say $250,000, we used the goods and submitted the document to our bank.
Five months later the bank is yet to give us any dollar. We now had to resort to buying black market at N450 for goods that have been used and sold thinking that we were going to get dollar @ 310.

Let me explain this again, lets say for ampicillin capsule you need 1kg of powder per packet. In january you use

1kg of powder X $30/kg = $30. (Multiply this by 310 and you get N9,300). You go ahead and sell this packet in the market for N12,000 for a nice profit of almost N3000. BUT WAIT!!

The official funds never come from your bank, your supplier needs payment so he can continue shipping, otherwise your business closes down. You now go to black market and buy the $30 (@ N450 rate = 13,500). You have just lost N1,500.

Now I just gave you a small example. Multiply this 1kg by 20,000 tons, and now you can see how manufacturers have lost money and closed down. We also had to fire dozens of people just to keep costs down.

What people dont know is that the dollars are NOT enough.. For every $1,000 needed by manufacturers, the CBN has only $100 to give.

Want to know the worst thing? That sample ampicillin packet example I gave you is being imported by some people straight from China. They are importing the finished product, and finished products have no duty.

So basically if you import the raw material as a manufacturer, some of the materials have duty up to 40%, meanwhile if you just have it made in China you bring it in duty free.

Want to know the funniest thing? Many of these importers have connections/bribe top bank officials so that same ampicillin you sold for N13,000 is being sold by N10,000 because they got their funds @ 310.

Please ask any questions if you guys have, but this country has some of the worst policies I've ever seen.

The fact that manufacturers have to buy black market, coupled with the fact its much cheaper to just import the finished product is ridiculous.. More companies are going to close.. We are making essential medicines yet we are almost closing, I can only imagine how other industries are doing..

menix:


E be like say nah dust una chop for house this morning

Abeg no drink water ooo, make e no bake inside ur brain..