Thursday, September 28, 2023

FX Crisis Impacts Badly On  Made-in-Nigeria products



The monetary value of goods produced by Nigerian manufacturers has reportedly nosedived by 27% between 2017 and 2021.

A five-year data obtained from the Manufacturers Association of Nigeria revealed that N9.43 trillion worth of goods were manufactured in 2017, but   plunged downward to N7.39 trillion by the end of 2021.

Thus is seen as significant owing to  a 19 % naira devaluation over the period, following which the government pledged to bolster the sector to diversify the flagging economy.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf said ” This is a major reduction,”  occasioned by challenges of foreign exchange, energy, inflation and China imports.

He said the foreign exchange situation has worsened, and most of them are heavily dependent on imported raw materials. “General inflation has affected aggregate demand for their products, forcing some of them out of business”.

He further explained that energy crisis had been going on for over five years as well as importation of cheap products from China which had  made things difficult for local manufacturers.