The Manufacturers Association of Nigeria has voiced serious concerns over what it terms the unfair treatment of its members by some commercial banks regarding unresolved foreign exchange forward obligations.
In a statement released on Thursday and signed by its Director General, Segun Ajayi-Kadir, the Association urged the Central Bank of Nigeria to take immediate action to address the situation.
“We call on the Central Bank of Nigeria to direct the concerned commercial banks to immediately unfreeze the accounts of innocent manufacturers in relation to the vexed issue of forex forwards,” the statement read in part.
Ajayi-Kadir stressed that manufacturers—who play a vital role in Nigeria’s economy—depend significantly on access to foreign exchange for importing essential raw materials, machinery, and equipment not produced locally.
He noted that recent actions by certain commercial banks are disrupting manufacturers’ operations, despite the companies not being at fault.
“However, recent developments haven’t 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,” he stated.
Ajayi-Kadir revealed that numerous MAN members have faced undue bottlenecks, excessive scrutiny, and, in some instances, the unlawful freezing of both corporate and personal accounts—measures that significantly hamper production and endanger business continuity.
He cited the case of KAM Industries Nigeria Limited, a prominent steel manufacturer and MAN member, which is currently entangled in a forex forward dispute with a commercial bank. He warned that this is not an isolated incident, as many other manufacturers are enduring similar challenges quietly.
“This rather unfortunate treatment of private business is only the reported one, and there are several others undergoing similar harrowing experiences. This should stop in the interest of economic development of Nigeria, job security, and business sustainability,” the statement said.
MAN explained that, under standard procedures, manufacturers pay commercial banks in Naira—either upfront or through credit facilities—for the purchase of foreign exchange needed to import raw materials. Once the banks transfer these funds to the CBN, the manufacturers are considered to have met their obligations.
“Given this background, MAN asserts that its members are not liable for delays or complications arising after the remittance of funds to the CBN by commercial banks,” the statement stressed.
Ajayi-Kadir urged banks to demonstrate understanding and support, rather than resorting to punitive measures against the very businesses that drive economic productivity.
“Our members should not be harassed by the banks. The banks should show understanding and be supportive as we all seek a solution to this rather unfortunate and unexpected impasse. As the innocent one and quite evidently the weakest and most vulnerable in the tripod, it is unconscionable that manufacturers are bearing the brunt,” he added.
MAN reaffirmed its commitment to defending the interests of its members and pledged to keep pushing for a more supportive business environment.
The Association also expressed its willingness to facilitate dialogue between affected manufacturers and the involved banks in a bid to resolve the ongoing issues amicably.
In August 2024, MAN urged the Central Bank of Nigeria to address the outstanding $2.4 billion in forex forward claims owed to manufacturers across the country.
The Association noted that the CBN had linked its inability to fulfill these obligations to an ongoing investigation by the Economic and Financial Crimes Commission into specific foreign exchange transactions.
