The Manufacturers Association of Nigeria (MAN) has expressed deep concerns over the treatment of its members by commercial banks regarding unmet foreign exchange (Forex) forward obligations.
Manufacturers rely heavily on access to Forex for importing essential raw materials, machinery, and equipment, but recent developments have shown a troubling trend in the way banks are handling the matter.
MAN members have reported significant unwarranted complexities and undue highhandedness by banks, including stringent requirements not aligned with the Central Bank of Nigeria’s (CBN) guidelines.
This has resulted in unnecessary bottlenecks and illegal freezing of corporate and personal bank accounts, negatively impacting production and threatening the sustainability of manufacturing operations.
A notable case involves KAM Industries Nigeria Limited, a leading manufacturer in the steel sector, which is facing a forex forward-related dispute with a commercial bank.
MAN asserts that its members are not liable for delays or complications arising after the remittance of funds to the CBN by commercial banks.
MAN has called on the CBN to direct commercial banks to immediately unfreeze the accounts of innocent manufacturers and speed up the long-overdue redemption of unsettled forex forwards.
The association reiterates its readiness to engage with banks and stakeholders to co-create solutions that will facilitate the timely resolution of the impasse.
MAN emphasizes that commercial banks and manufacturers should be partners that collaborate to build shared prosperity.
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