Naira Appreciation: 'Why there’s no quick gain for manufacturers' - Coleman Wire MD explains

The Managing Director of Coleman Wires and Cables, Mr George Onafowokan, has explained why the naira appreciation may not bring quick gain to manufacturers.

He stated this because buyers stopped making purchases, waiting for the currency to continue to strengthen.

“This led to a waiting game, with speculators hoping to profit from the situation,” he stated while speaking on the impact of the naira’s appreciation on manufacturers.

According to him, the naira will appreciate and recover, mentioning the government’s effort to stabilize the economy

Onafowokan also talked about the rehabilitation of refineries and other initiatives that show that Nigeria is seriously open for business. He however stressed on the importance for policies like fiscal policies that support manufacturers

He said: “Naira appreciation and the government’s efforts to restabilize the currency would help businesses regain their footing.

"The current situation is a result of speculation about the depletion of foreign reserves, which has led to misconstrued information and instability.

“It would be good if the government can implement policies that support manufacturers and encourage them to tighten everything to balance the forex position.

"Naira will appreciate more than N1, 000 per dollar, manufacturers will reduce prices when the currency regains its strength in the market.”

BEB