Exchange Unification: MAN Seeks Exemption For Outstanding Debts

The Manufacturers Association of Nigeria has appealed to the Central Bank of Nigeria to exempt outstanding credit commitments to foreign suppliers of raw materials from the unified exchange rate.

The President, MAN, Mansur Ahmed, in a statement issued on Thursday, urged the apex bank to consider unpaid credit from the second quarter of 2019 till date, which had been agreed with suppliers at N345 to a dollar.

This, according to him, will allow banks to redeem the obligations to foreign suppliers on behalf of manufacturers at between N330 and N360 per dollar.

The statement was titled ‘The position of the Manufacturers Association of Nigeria on the recent unification of foreign exchange windows in Nigeria by the central bank.’

Ahmed warned that failure to consider this might lead to the closure of many manufacturing companies and affect CBN stimulus packages to the manufacturing sector due to cash flow crunch.

While highlighting the benefits of a single exchange rate, he noted that transition from a multiple exchange rate regime to a single exchange rate would be accompanied by unavoidable pain, especially in the repayment of dollar-denominated loans.

Ahmed said, “the CBN should, as a matter of urgency, put a measure in place to minimise the intensity of the pain by considering outstanding obligations of manufacturers from the second quarter 2019 till date given at N345 to a dollar prior to unification and allow such to be settled at between N330 and N360 per dollar.

“The current forex unification agenda will entrench convergence, enhance exchange rate stability, boost investors’ confidence, control rising inflation and promote transparency.”