The
appreciation of the naira would not bring immediate gains to manufacturers, as
buyers held back on purchases, waiting for the currency to continue to
strengthen, the Managing Director of Coleman Wires and Cables, Mr. George
Onafowokan, has said.
Onafowokan
said this led to a waiting game, with speculators hoping to profit from the
situation. He said although, Nigerians have now seen a naira devaluation in the
last two weeks, he believes that the naira will appreciate and recover.
The
Coleman boss cited the government's efforts to stabilize the economy, including
the return of foreign portfolio investors with over 20 per cent interest rate
on the Federal Government bond and treasury rates.
Onafowokan,
in an interview, also highlighted the rehabilitation of refineries and other
initiatives that indicate Nigeria is open for business, not speculation.
The
MD, however, emphasized the need for fiscal policies that support
manufacturers. According to him, the Manufacturers Association of Nigeria (MAN)
is pushing for policies to ensure manufacturers remain in business.
When
asked about the turning point, Onafowokan pointed to the recent market report
showing the naira's appreciation and the government's efforts to restabilize
the currency, which will help businesses regain their footing.
In
his view, the current situation is a result of speculation about the depletion
of foreign reserves, which has led to misconstrued information and instability.
He
urged the government to implement policies that support manufacturers and
encouraged them to tighten everything to balance the forex position.
Onafowokan
expressed optimism that the naira will appreciate more than N1, 000 and that
manufacturers will reduce prices when the currency regains its strength in the
market.
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