The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently intervene in what it describes as unjust treatment of its members by certain commercial banks over unresolved foreign exchange (forex) forward obligations.
The Association alleged that some banks have taken punitive actions, including the freezing of corporate and personal accounts of manufacturers, despite the manufacturers having fulfilled their part of forex transactions.
MAN’s Director General, Segun Ajayi-Kadir urged the CBN to direct affected banks to immediately unfreeze the accounts of manufacturers who are being penalized for delays and complications that are beyond their control.
“We call on the Central Bank of Nigeria to direct the concerned commercial banks to immediately unfreeze the accounts of innocent manufacturers in relation to the vexed issue of forex forwards,” he said.
Ajayi-Kadir stressed that manufacturers depend heavily on access to forex for the importation of critical inputs such as raw materials, machinery, and equipment that are not locally available. He described the recent actions of some banks as “troubling” and “detrimental” to the manufacturing sector—an essential pillar of Nigeria’s economy.
“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.
According to the Association, several of its members have reported experiencing arbitrary account freezes, excessive scrutiny, and procedural bottlenecks—all of which are severely disrupting production operations and threatening business continuity.
A specific example cited was KAM Industries Nigeria Limited, a major steel manufacturer and MAN member, which is currently involved in a dispute with a commercial bank over forex forward obligations.
Ajayi-Kadir stated that this case is representative of a wider issue affecting numerous manufacturers who have remained silent despite similar treatment.
Highlighting standard industry practice, MAN explained that manufacturers typically remit the required naira payments to commercial banks—either directly or via credit facilities—for onward forex settlement with the CBN. Once funds are remitted, the manufacturers’ obligations are deemed fulfilled.
“It is unjust that manufacturers are being penalized for delays that occur after remittance to the CBN. Our members are not liable for the lapses in the system,” Ajayi-Kadir emphasized.
He further urged commercial banks to demonstrate greater understanding and restraint in their dealings with manufacturers, who he described as the “most vulnerable” stakeholders in the current forex challenges.
“Our members should not be harassed by the banks. The banks should show understanding and be supportive as we all seek a solution to this unfortunate and unexpected impasse,” he added.
MAN reaffirmed its commitment to protecting the interests of manufacturers and fostering a conducive business environment. The Association also expressed willingness to mediate between affected members and the concerned banks in order to reach an amicable resolution.
