Nigeria’s Industry Minister Vows Action on $2.4bn Forex Contract Standoff
Nigeria’s Minister of State for Industry, Senator Owan Enoh, has pledged to engage the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, over unresolved $2.4bn foreign exchange forward contracts. The prolonged delay in settling these contracts, a critical obligation of the CBN, has caused significant disruptions for manufacturers, exposing many to financial losses.
Speaking at his inaugural stakeholders’ town hall meeting with representatives from the Manufacturers Association of Nigeria (MAN), Nigeria Association of Chambers of Commerce, and other key private sector bodies, Enoh emphasised his commitment to addressing the issue. “As early as next week, I will begin discussions with the CBN governor. I’m not one to make empty promises; I will act and share outcomes with MAN and OPS,” he stated.
The gathering aimed to foster collaboration and drive transformative policies for Nigeria’s industrial growth. Stakeholders, including MAN President Francis Meshioye and Director-General Segun Ajayi-Kadir, presented a raft of challenges, including the CBN’s delay in fulfilling its contractual obligations.
Ajayi-Kadir described the $2.4bn FX contracts as a critical burden on the manufacturing sector. “The delay has exposed our members to massive losses. We need immediate action to halt this bleeding,” he said. He also urged government ministries and agencies to prioritise made-in-Nigeria products to bolster local industries.
Enoh unveiled plans to form a multi-stakeholder Industrial Revolution Workgroup to tackle systemic challenges and identify actionable solutions. The group, co-chaired by the minister and MAN’s president, will meet quarterly, ensuring continuity and sustained dialogue.
Acknowledging the struggles of Nigeria’s beleaguered textile industry, Enoh lamented its decline and pledged to explore policies that could revive the sector. “The textile industry once employed countless Nigerians. We need to understand what went wrong and how to return to those heights,” he said.
The minister also welcomed private sector support for ongoing tax reform bills and highlighted the importance of leveraging local raw materials. Professor Nnanyelugo Ike-Muonso of the Raw Materials Research and Development Council noted that many raw materials available domestically are still being imported due to a lack of awareness, further straining the naira.
The town hall marked a critical first step in bridging the gap between Nigeria’s industrial stakeholders and government policymakers, with Enoh promising swift actions to restore confidence in the sector.
