Market News
‘No immediate profit to manufacturers from naira gains’ - THE NATION
BY Chikodi Okereocha
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, the Managing Director of Coleman Wires and Cables, Mr. George Onafowokan, has said.
Onafowokan said this led to a waiting game, with speculators hoping to profit from the situation. He said although, Nigerians have now seen a naira devaluation in the last two weeks, he believes that the naira will appreciate and recover.
The Coleman boss cited the government’s efforts to stabilize the economy, including the return of foreign portfolio investors with over 20 per cent interest rate on the Federal Government bond and treasury rates. Onafowokan, in an interview, also highlighted the rehabilitation of refineries and other initiatives that indicate Nigeria is open for business, not speculation.
The MD, however, emphasized the need for fiscal policies that support manufacturers. According to him, the Manufacturers Association of Nigeria (MAN) is pushing for policies to ensure manufacturers remain in business.
When asked about the turning point, Onafowokan pointed to the recent market report showing the naira’s appreciation and the government’s efforts to restabilize 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 encouraged them to tighten everything to balance the forex position.
Onafowokan expressed optimism that the naira will appreciate more than N1, 000 and that manufacturers will reduce prices when the currency regains its strength in the market.
