The Manufacturers Association of Nigeria (MAN) has raised serious concerns over the handling of foreign exchange (forex) forward obligations by some Nigerian commercial banks, alleging that their actions are inflicting severe hardship on manufacturers across the country.
In a statement issued by the Director General of MAN, Segun Ajayi-Kadir, mni, the association decried what it described as “unwarranted complexities and undue highhandedness” by banks in their dealings with manufacturers. According to MAN, these actions include imposing excessive requirements not aligned with the Central Bank of Nigeria (CBN) guidelines and freezing both corporate and personal accounts of manufacturers.
“The manufacturing sector is grappling with operational disruptions due to unresolved forex obligations. Manufacturers, who are blameless in this situation, are now being penalized for delays they did not cause,” Ajayi-Kadir said.
He cited the ongoing dispute between KAM Industries Nigeria Limited, a major steel manufacturer, and one of Nigeria’s commercial banks as an example of the widespread problem. “This case is only one of many. Several other manufacturers are facing similar treatment, and this trend poses a grave threat to Nigeria’s industrial stability,” he added.
MAN explained that manufacturers typically fulfill their forex requirements by making naira payments to commercial banks — either directly or through credit facilities — for the importation of raw materials and equipment. The banks then remit the funds to the CBN on behalf of the customers. According to the association, once this process is completed, manufacturers should be considered to have fulfilled their part of the transaction.
“It is, therefore, unjust and unacceptable for manufacturers to bear the brunt of a system failure that rests beyond their control. Their accounts should not be frozen, and they should not be subjected to harassment,” Ajayi-Kadir stated.
The association called on the CBN to intervene urgently by directing commercial banks to unfreeze affected accounts and expedite the long-overdue settlement of outstanding forex forward obligations.
MAN also expressed its readiness to engage with stakeholders — including banks and the apex bank — to find a lasting solution. “Manufacturers and banks should be allies in building a prosperous economy, not adversaries,” Ajayi-Kadir said.
The group warned that failure to address the issue could accelerate de-industrialization in Nigeria, trigger job losses, and further erode investor confidence in the economy.
The Manufacturers Association of Nigeria is a leading voice for the country’s industrial sector, representing a wide range of manufacturers. It is committed to promoting policies that enhance productivity, drive sustainable growth, and improve the competitiveness of Nigeria’s manufacturing industry.
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