Manufacturers Hit Hard as Currency Depreciates by 38.9%

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In the last three months, the Nigerian naira has lost nearly 39% of its value against the US dollar, dropping from N745.19/$ to N1035.12/$ at the official I&E window of the Central Bank, as reported by The PUNCH.

This decline is causing concerns among manufacturers and the organized private sector, impacting their financial performance.Data from the FMDQ Securities Exchange highlights the worsening situation, prompting organizations like the Manufacturers Association of Nigeria, Lagos Chamber of Commerce and Industry, and the Nigerian Association of Small-Scale Industrialists to reveal that they are downsizing operations due to the falling naira value.

This downsizing may lead to job losses for many workers.Despite the government’s recent efforts to improve liquidity in the foreign exchange (FX) market, the volatility of the naira continues.

The President of the Manufacturers Association of Nigeria, Francis Meshioye, expressed worries in an interview with The PUNCH, stating that if this trend persists, it could have calamitous consequences for the real sector of the economy.In the current business climate, companies are facing challenges, with some even shutting down their manufacturing operations in Nigeria.

Source: PUNCH

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