In the wake of Nigeria’s persistently turbulent forex crisis, manufacturers are projecting imminent price hikes for commodities in response to the Naira’s continuous decline against the US dollar. Francis Meshioye, the President of the Manufacturers Association of Nigeria, expressed grave concerns over the impact of the free fall of the Naira on businesses.
Meshioye, in a statement over the weekend, highlighted the challenging scenario faced by manufacturers. With the Naira quoted at N1,410 per US dollar in the parallel market and N891.90 at the official market, he emphasized the necessity for businesses to adapt their strategies to navigate this economic turmoil.
The president acknowledged the difficulty of maintaining profitability under the current exchange rate, emphasizing the critical nature of reaching the break-even point. Anticipating higher prices for goods, he stressed that the diminished purchasing power of consumers could lead to reduced demand, thereby affecting the bottom line of manufacturers.
Meshioye urged businesses to revise their strategies in response to the harsh economic conditions, recognizing the need for flexibility in both short-term and long-term plans. As the Naira experiences mixed sentiments, appreciating in the official market but depreciating in the parallel market, manufacturers brace for the storm, preparing to weather the economic challenges that lie ahead.
