29/01/ · The acute shortage of foreign exchange in Nigeria is a major operational nightmare facing manufacturers in the country, the Manufacturers Association of Nigeria said on Thursday. The association, in its MAN CEOs Confidence Index for the fourth quarter of , said manufacturers had been facing forex challenges since the second quarter of last year due 26/10/ · Recently Nigerian billionaire Dangote, a manufacturing tycoon with a range of companies spanning cement to flour, has reduced staff because of “operational costs” 03/08/ · The liquidity crisis in the foreign exchange (forex) market is becoming increasingly unbearable as many businesses face challenges with the importation of raw materials, equipment, spare parties, and other inputs, Director-General, Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf has said. The development, he added, has created a new dimension to the supply chain [ ]
CBN’s forex policies: Timeline between Covid and – Nairametrics
by Victor Ekwealor Apr 13, The business climate in Nigeria is one of the hardest; setting up and effectively running a business in these climes can test even the most adept entrepreneurs. Suggested Read: The actual cost of launching a Startup in Lagos. From battling anti progress governmental policies to spending bulk of profit on fueling power generators, the Nigerian entrepreneur faces an uphill task.
The recent weakening of the Naira, and resultant foreign exchange crises, has placed a further strain on the already burdensome duty of running a business in Nigeria; everybody is affected.
A recent Twitter poll run by Techpoint is a reflection of the general sentiment among entrepreneurs. Under normal ways of nigeria can resolve forex crisis to manufacturers, the effect of the Nigerian forex crisis should be contained in certain sectors of the economy. But considering that Nigeria has a largely unfavorable trade balance — we import more than we export — the price of these imported materials have an indirect effect goods sold domestically.
Apart from the livestock rearing business, let us take a long look at businesses from other sectors that are suffering. When Multichoice announced a price hike in their DStv and GOtv subscription plans, a large outcry followed, ways of nigeria can resolve forex crisis to manufacturers.
It is okay to be outraged, but content providers like Multichoice and others actually buy high-demand content in dollars; the same import situation ways of nigeria can resolve forex crisis to manufacturers in play. So plainly put, they did not have any choice in the matter — either increase or lose out totally. Suggested Read: Big Brother Naija; shedding light on the agony Nigerian Businesses are facing Advertisement.
Tech startups and businesses that operate primarily off the internet are bearing the biggest brunt of the Ways of nigeria can resolve forex crisis to manufacturers forex crisis. This is apt considering that we do not have indigenous alternatives to most of these products, ways of nigeria can resolve forex crisis to manufacturers.
Technology-based businesses that have to buy software solutions and services in dollars have gotten raw deals. Innoson Motors is an indigenous vehicle manufacturer that Nigerians take great pride in. But even this campaign was not enough to stop them suffering the pangs of the Nigerian forex crisis. A report that was later strongly refuted by the company claims that they suspended operations in their Nnewi plant.
Unless Innoson has a stash of dollars somewhere, the former report is plausible considering that they import a majority of their materials. In February this year, the Nigerian branch of Kentucky Fried Chicken KFC shut down a sizeable portion of their operations in the country. The action was largely blamed on the recession and the reduced buying power of consumers. Potatoes are an integral part of the KFC menu and considering the fact that they import them, a lack of forex probably also had a role to play in their closure.
Aero Contractors and First Nation Airlines suspended operations this year due to a general lack of operational forex and the economic squeeze of course. On one hand, businesses that are local alternatives to foreign services have enjoyed a robust patronage from dollar starved customers.
But the proceeds and profits from this increased patronage go back into the increased operational cost of running their respective businesses. On how he gets any forex at all, Murtala Abdullah CEO of SmartWeb named the usual suspect; black market. The black market is the most reliable source for foreign exchange these days, but its volatility is worrying.
This mercurial nature of foreign exchange is the biggest problem. Considering that the price can go up at anytime, businesses now factor this fluidity into the cost of goods and services, invariably, the consumer suffers. The ones that do not consider the volatile cost of forex when fixing prices of goods and services end up getting burnt.
Chris not real name is a second-hand electronics dealer in the Alimosho area of Lagos State Nigeria. He buys merchandise from ways of nigeria can resolve forex crisis to manufacturers who sell to dealers like him on wholesale.
Among some of the many reasons that led to the scarcity of foreign exchange dollarsthe most prominent was to curb import and increase demand for locally made goods. If and when import is curbed, export should also be increased to a large extent to balance out the existing trade deficit.
But this is not the case as even exporters are getting the short end of this stick. On September 30ask the Techpoint Africa team anything. Limited slots available so reserve a spot now. Techpoint Build is here!
Be part of the largest startup and technology gathering in West Africa. Register for free now! Open DMs allow people to reach anyone on the Techpoint Africa team at any time. Save a seat. by Chimgozirim Nwokoma Sep 16, by Victoria Fakiya Sep 15, ways of nigeria can resolve forex crisis to manufacturers, by Ogheneruemu Oneyibo Sep 15, by Oluwanifemi Kolawole Sep 14, by Múyìwá Mátùlúkò Sep 7, by Oluwanifemi Kolawole Aug 31, by Oluwanifemi Kolawole Aug 17, by Emmanuel Paul Aug 6, Nigerian forex crisis and the collateral damage to local businesses by Victor Ekwealor Apr 13, Share this article:.
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, time: 25:36Forex crisis, major nightmare facing manufacturers, says MAN - NigeriaSummary News
20/09/ · • Middle-class Nigerians shop for stable ‘dollar’ as FX crisis continues • Naira in moment of decision, trades at N/$ Despite improved confidence in the economy as shown in the latest Manufacturers Confidence Index (MCCI) by local manufacturers, demand for foreign exchange (forex) on the back of outstanding obligations has risen to about $2 billion as local producers appear to be 13/04/ · Tech startups and businesses that operate primarily off the internet are bearing the biggest brunt of the Nigerian forex crisis. According to the National Information Technology Development Agency, Nigeria reportedly spends ₦1 trillion ($3 billion) annually on the importation of foreign software. This is apt considering that we do not have indigenous alternatives to most of these blogger.comted Reading Time: 6 mins ’Femi AsuThe acute shortage of foreign exchange in Nigeria is a major operational nightmare facing manufacturers in the country, the Manufacturers Association of Nigeria said on blogger.com association, in its MAN CEOs Confidence Index for the fourth quarter of , said
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