The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently settle all outstanding foreign exchange (FX) forward obligations and restrain commercial banks from subjecting manufacturers to undue pressure and harassment over the delays.
In a statement issued by the Director General of the Association, Segun Ajayi-Kadir, and made available to BusinessDay, MAN expressed deep concern over what it described as escalating challenges faced by its members in accessing foreign exchange needed for the importation of critical raw materials, machinery, and other industrial inputs not available locally.
Ajayi-Kadir lamented that despite meeting their naira obligations to commercial banks for FX forwards, manufacturers are now being unfairly penalised for delays originating from the apex bank. “Our members have reported significant and unwarranted complexities, including illegal freezing of their corporate and personal accounts, which are not in line with existing CBN guidelines,” he said.
He described the actions of certain banks as “high-handed” and counterproductive to the sustainability of the manufacturing sector. “Manufacturers are now burdened with stringent, extra-regulatory demands, creating bottlenecks that hamper production and threaten business continuity.”
Citing a specific example, Ajayi-Kadir referenced a foreign exchange-related dispute involving KAM Industries Nigeria Limited—a prominent steel manufacturer in West Africa—and one of Nigeria’s commercial banks. He noted that several other manufacturers are undergoing similar distressing experiences across the industry.
“This trend must be halted in the interest of Nigeria’s economic development, job creation, and the survival of the manufacturing sector,” he stated.
He explained that commercial banks, acting on behalf of their customers, receive naira payments—either directly or via credit facilities—to secure FX from the CBN. Once these funds are remitted to the apex bank, the manufacturers’ obligations are considered fulfilled.
“Given this process, our members should not be held liable for any subsequent delays or failures by the CBN to deliver on the FX,” Ajayi-Kadir added. “It is therefore unfair and unjust for commercial banks to penalise manufacturers for circumstances beyond their control.”
The association further urged commercial banks to exercise restraint and show support, stressing the need for a collaborative approach in resolving the impasse.
“As the most vulnerable party in this equation, manufacturers should not be made to suffer disproportionately,” Ajayi-Kadir said. “We call on the CBN to direct affected banks to immediately unfreeze the accounts of innocent manufacturers and accelerate the long-overdue settlement of the FX forward obligations.”
MAN reaffirmed its commitment to constructive engagement with the CBN, commercial banks, and other stakeholders to co-develop solutions that will end the protracted crisis.
“Banks and manufacturers should be partners in progress, not adversaries,” Ajayi-Kadir concluded. “We remain open to facilitating dialogue between our members and the banking sector to restore trust and foster mutual prosperity.”
 has called on the Central Bank of Nigeria (CBN) to urgently settle all outstanding ...){kind=link}