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Stop harassing us over unmet Forex Forward Obligations — Nigerian manufacturers tell banks - NIGERIAN TRIBUNE
Manufacturers, under the aegis of the Manufacturers Association of Nigeria (MAN), have called on the nation’s commercial banks to stop harassing them over unmet foreign exchange (Forex) forward obligations.
The association made the plea in a statement signed by its Director General, Segun Ajayi-Kadir, over the weekend.
Clarifying the position of members on the issue, the association explained that commercial banks usually receive payments in Naira, either through direct remittance from their customers or credit facility for the purpose of securing FX for raw-material importation.
Upon receipt of those funds or grant of credit facility, it added, the banks will remit the Naira to the apex bank on behalf of their customers.
“From that point, the funds are deemed to be held by the apex bank, thereby completing the customers’ obligations,” it stated.
The association, therefore, absolved its members from delays or complications arising after the remittance of funds to the CBN by commercial banks, arguing it would be unfair to hold manufacturers liable, since they have fulfilled their own obligations and played their part.
It described as unwholesome the decision of some commercial banks to make its members suffer for a problem they didn’t create.
According to MAN, its members are presently facing significant unwarranted complexities and undue highhandedness from the banks.
Many manufacturers, it added, are presently faced with stringent requirements that do not align with the Central Bank of Nigeria’s (CBN) guidelines for sourcing forex.
This, the association argued, has resulted in unnecessary bottlenecks and illegal freezing of their corporate and personal bank accounts, with negative impact on production, which could threaten the sustainability of manufacturing operations.
“As a vital sector of the economy, manufacturers rely heavily on access to Forex for the importation of essential raw materials, machinery, and equipment that are not locally available.
“However, recent developments have shown a troubling trend in the way banks are handling the matter, to the extreme detriment of manufacturing industries who have the needless misfortune of being at the receiving end of a problem they didn’t create and shouldn’t suffer.”
