The Guardian Nigeria News - Nigeria and World News guardian.ng 23 Sep, 2020 03:00 am

Manufacturers worry about rising inflation, access to forex for raw materialsBusiness

Manufacturers worry about rising inflation, access to forex for raw materialsBusiness
Local manufacturers have expressed concerns about rising inflation in Nigeria, considering that prices are further spiked by challenges in supply chains

Local manufacturers have expressed concerns about rising inflation in Nigeria, considering that prices are further spiked by challenges in supply chains, occasioned by the inability to access foreign exchange for the importation of critical raw materials.The consequence of this development was that sectoral groups ran short of supplies of raw materials due to disruptions in the global value chain and many still cannot access forex,” he said.“Particularly, the burden of foreign currency-denominated loans, and offsetting of existing credit commitments to foreign suppliers of raw materials should be given priority consideration.” While commending the Federal Government for the initiative towards unifying foreign exchange windows in Nigeria, Ahmed, however, urged the CBN to ensure that the unavoidable shocks that would result from multiple exchange transition to a single exchange regime properly managed to have minimal effect on the sector.

“It is our conviction that the foreign exchange unification initiative will engender a regime of a balanced participation for forex users and promote a transparent as well as efficient allocation of forex required for sustained economic growth,” he said.This, he said, might continue till the end of this year, noting that in addition to the disruption to global and domestic supply chains as a result of COVID-19, inflation was worsened by the increase in Value Added Tax (VAT).

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