The Managing Director of Coleman Wires and Cables, Mr. George Onafowokan, has urged the Federal Government to prioritise productivity reforms to revive the manufacturing sector.
This was disclosed in his recent interview with a reporter, according to the Independent.
Onafowokan stressed that the appreciation of the naira would not bring immediate succour to manufacturers, as buyers held back on purchases, anticipating further appreciation of the naira.
He said, “This led to a waiting game, with speculators hoping to profit from the situation.”
However, Onafowokan is convinced that the Naira will appreciate and rebound after two weeks of devaluation due to government efforts to stabilize the economy, in which foreign portfolio investors with more than 20 % interest on Federal Government bonds and treasury bills have returned.
He also underlined the rehabilitation of refineries and other initiatives showing that Nigeria is ready for business, without speculation.
Onafowokan highlighted the need for policies that would support manufacturers, such as tax policy and benefits to industry.
He pointed out that the Manufacturers Association of Nigeria is pushing for such policies, to ensure manufacturers’ survival.
Onafowokan pointed to the recent market report showing the appreciation of the naira and the government’s efforts to stabilize the currency, which would help the businesses regain their footing when asked about the turning point.
According to him, the current state of affairs is caused by speculation regarding the depletion of foreign reserves that has resulted in misconstrued information and uncertainty.
He called on the government to implement policies that support manufacturers and also implement economic tools that will enhance the forex position.
However, Onafowokan expressed hope that when the naira appreciates to more than N1 000 manufacturers would reduce prices.
