To boost local production, the Association of Senior Civil Servants of Nigeria (ASCSN) has appealed to the Federal Government to make available forex to “genuine” manufacturers.
The group made this request on Monday in Lagos State through its President of the Union, Tommy Etim Okon, stating that the Naira experienced a “free fall” ever since the forex policy was initiated by the Central Bank of Nigeria (CBN).
Okon said that the availability of forex to local manufacturers would boost business activities and grow the country’s informal economy.
He said, “with the new forex policy by the Federal Government through the Central Bank, we have now seen the free fall of Naira vis-a-vis the other international currencies. Our position is very clear, we call on the Federal Government to ensure that forex is made available to genuine manufacturers only, to enable them to fulfil and increase their local production because if there is an increase in the local production of goods and services, it will stimulate businesses; and the informal economy will also grow where goods and services are locally produced.
“The informal economy is what is even driving the real economy, so it is really important that the government look into that by ensuring that genuine manufacturers are given a level of forex needed to support their local production so that this will impact positively on the economy and jobs will be created.
“The policy has seriously affected everything about the economy, the food prices, spare parts and every other sector of the economy.
“The free fall of the Naira against the US Dollar and the consequent rise in the cost of living has been a major concern for the citizens and the government must, therefore, take necessary measures to improve its fiscal policies to shore up the naira and check the consistent downward slide of the currency.
“For, it is indeed worrisome that about five years ago, N160 was exchanging for one dollar and right now as at 5th August, the exchange rate is about N515 to one dollar, a devaluation of almost 400%. Experts fear that unless Nigeria increases its foreign reserves, reduce its appetite for foreign loans, boost local production to depend less on the importation of goods including refined petroleum products, the Naira will continue its downward slide.
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“Reports also indicate that the Central Bank of Nigeria (CBN) unwittingly weakened the Naira in May 2021 when it adopted what it called Nigerian Automous Foreign Exchange Rate (NAFEX) of N410.25 to a dollar and removed the N379 per dollar rate that for months, remained on its website.
“Since then, the naira has continued its free fall against the dollar and experts warn that if this trend is allowed to subsist, the country’s economic fortunes may face further decline.
“It is against this background I call on the Government to ensure that forex is made available to genuine manufacturers only to enable them to increase local production of goods in order to stimulate businesses.
“The current exchange rate is certainly having adverse effects on the economy because the cost of essential items such as drugs, raw materials for industries, food items, spare parts, automobiles, etc, have continued to trigger inflation leading to the lowering of purchasing powers of millions of Nigerians. The Government needs to act fast to revamp the economy.”
