Market News

More manufacturers have been reacting to the sudden leapfrog of naira appreciation against dollar, with the latest being the Managing Director of Coleman Wires and Cables, Mr. George Onafowokan. He also ruled out immediate short term gains of the naira appreciation on prices of goods.

In particular, Onafowokan stated that the appreciation of the naira would not bring immediate gains to manufacturers, as buyers held back on purchases, waiting for the currency to continue to strengthen.

He believes that the naira will appreciate and recover, citing government’s efforts to stabilise the economy, including the return of foreign portfolio investors with over 20 per cent interest rate on Federal Government’s bonds and Treasury rates.

He also highlighted the rehabilitation of refineries and other initiatives that indicate Nigeria was open for business, not speculation. The MD emphasised the need for policies that support manufacturers, such as fiscal policies and benefits for the industry. He noted that the Manufacturing Association of Nigeria was pushing for these policies to ensure manufacturers remain in business.

When asked about the turning point, Onafowokan pointed to the recent market report showing naira’s appreciation and government’s efforts to stabilise the currency, which will help businesses regain their footing.

In his view, the current situation is a result of speculation about the depletion of foreign reserves, which has led to misconstrued information and instability. He urged the government to implement policies that support manufacturers and encourage them to tighten everything to balance the forex position.