Naira’s Plunge Threatens Manufacturers’ Profitability And Survival

The Manufacturers Association of Nigeria (MAN) has warned that the persistent fall of the Naira against the US dollar in the forex market will lead to higher prices of commodities and lower demand in the market. The MAN President, Francis Meshioye, made this statement over the weekend, expressing his concern over Nigeria’s forex crisis.

He said that manufacturers are facing a tough time to stay in business with the Naira trading at N1,410 per US dollar in the parallel market and N891.90 in the official market. He said that the current exchange rate makes it impossible for manufacturers to remain profitable and that their main challenge is to break even.

He added that the high prices of commodities will affect the purchasing power of consumers and reduce the demand for goods. He said that the break-even point will become critical for manufacturers and that they will have to revise their strategy to cope with the harsh economic situation.

He lamented that it is difficult for manufacturers to have a long-term plan and that they have to constantly adjust their short-term plans to reflect the reality of the economy. He urged the government to address the forex crisis and stabilize the Naira.

He also recalled that the Naira closed with mixed results last Friday, as it appreciated in the official market but depreciated in the parallel market.