The Manufacturers Association of Nigeria (MAN) wants the Federal Government to do an assessment of where the country is in food production before embarking on foreign exchange restriction policy.
President Muhammadu Buhari had last week ordered the Central Bank of Nigeria (CBN) to restrict foreign exchange access from food importers
In a statement signed by Segun Ajayi- Kadir, director-general of MAN, weekend, the association said unilateral decision could be counterproductive when the operators are not duly consulted.
“MAN actively supports resource-based industrialisation, and this is based on our position that we should significantly improve our local sourcing of raw materials and develop sustainable value chains,” he said.
MAN said the government must consider the state of the infrastructure and its capacity to respond and support the policy.
“Our mantra is clearly harped on patronage of made-in-Nigeria products as we believe the country can only experience development when we buy what we produce and produce what we consume,” the association said.
MAN advised that before carrying out such order, there should be strategic implementation of plans to achieve sufficiently the motive behind the policy, adding that in order to achieve sustainable sufficiency in local food production some measures have to be put in place to encourage the producers.
It added that such policy may counter the motive behind the directive.
“The apex bank will have to do an assessment of where we are in practical terms and realistically weigh its options before embarking on such a far-reaching policy. There should also be a process to be followed before such a plan is unfolded.”
“Clarity is needed and we have to be deliberate and strategic in pursuing such a far-reaching monetary measure, especially in the light of our vulnerability occasioned by trade agreements that require the country to be more open to imports and the well-known antics of our neighbouring countries,” the statement concluded.
The association of over 2,000 members said it is not necessarily worried about the directive as it prefers to see it as an expression of the president’s mindset.
MAN said a close examination of the directive reveals that it is broad and would have to be both specific and targeted.
“For instance, we need to know what type of food— finished and ready to eat? Or input for further processing? In the case of the latter (in particular), we need to know the local capacity available compared to national demand and if not adequate, creditably determine what time and resources are needed to ramp up capacity and production. It is pertinent to pre-determine these suggestions as part of the implementation strategy. To achieve sustainable self-sufficiency, local producers ought to be incentivised otherwise we may be inviting a looming barrage of smuggling activities.”
Gbemi Faminu
