Prioritise Productivity Reforms To Revive Manufacturing, Onafowokan Tells FG | Independent Newspaper Nigeria
Source: Independent Newspapers Nigeria
LAGOS - As the key drivers of economic growth include labour, capital, and how efficiently these two resources are used, the Managing Director of Coleman Wires and Cables, Mr. George Onafowokan, has called on the Federal Government to prioritise productivity reforms to revive manufacturing sector.
While expressing his views on the impact of the naira's depletion on manufacturers, in his recent interview, he emphasised that 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.
"This led to a waiting game, with speculators hoping to profit from the situation", he said.
Although we have now seen Naira devaluation in the last two weeks, Onafowokan believes that the naira will appreciate and recover, citing the government's efforts to stabilise the economy, including the return of Foreign Portfolio Investors with over 20 percent interest rate on the Federal Government Bond and Treasury rates.
He also highlighted the rehabilitation of refineries and other initiatives that indicate Nigeria is open for business, not speculation.
Onafowokan, emphasised the need for policies that support manufacturers, such as fiscal policies and benefits for the industry.
He noted that the Manufacturers Association of Nigeria (MAN) is pushing for these 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 restabilise 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, however, 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.