MAN urges CBN to order manufacturers’ accounts unfreeze

MAN urges CBN to order manufacturers’ accounts unfreeze

The Manufacturers Association of Nigeria (MAN) on Thursday urged the Central Bank of Nigeria to expedite actions to see its members’ accounts unfreeze by the commercial banks over issues of forex forward.

The body also reiterated its call on the CBN to speed up the long overdue redemption of the unsettled forex forward, as a lasting solution to the dilemma.

The association made the demands while expressing deep concerns regarding what it called the unwholesome treatment of its members by some commercial banks in Nigeria regarding unmet foreign exchange (Forex) forward obligations.

Segun Ajayi-Kadir, the Director General of MAN, in a statement on Thursday, said 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.

He, however, said 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.”

He said some members of MAN have recently reported significant unwarranted complexities and undue highhandedness by the banks.

“Many have faced stringent requirements that are not aligned with the Central Bank of Nigeria’s (CBN) guidelines, resulting 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,” he said.

He cited a “worrisome case in point is the ongoing forex forward related dispute involving KAM Industries Nigeria Limited, a leading manufacturer in the steel sector in West Africa and a member of the association, and one of the commercial banks in Nigeria.”

He said, “The unfortunate treatment of private business is only the reported one, and there are several others undergoing similar harrowing experiences.”

The DG said such an act should stop in the interest of economic development of Nigeria, job security and business sustainability.

He called on the CBN to direct the concerned commercial banks to immediately unfreeze the accounts of innocent manufacturers in relation to the vexed issue of forex forwards.