Investing.com - Financial Markets Worldwide

Nigeria woos local firms to boost manufacturing as coronavirus disrupt imports

Published 19/05/2020, 22:19
Nigeria woos local firms to boost manufacturing as coronavirus disrupt imports

By Camillus Eboh
ABUJA, May 19 (Reuters) - Nigeria is wooing local companies
to boost manufacturing and food production in the West African
country, the central bank said, after the novel coronavirus
disrupted imports and created large financing needs.
The coronavirus outbreak and an oil price plunge have
intensified headwinds for Nigeria, which relies on imports for
consumption, triggering a historic decline in growth and large
financing needs.
The government expects the economy to shrink by 3.4% this
year as measures to slow the spread of the virus create
bottlenecks for manufacturers, struggling to boost output in a
nation without a strong productive base.
Central Bank Governor Godwin Emefiele urged domestic
companies to support efforts to grow the economy, he told chief
executives of conglomerates operating in Nigeria at a virtual
meeting over the weekend.
Emefiele said the bank was willing to provide hard currency
for imports of machinery and raw materials that cannot be
sourced at home, he said in a statement.
Nigeria is facing dollar shortages worsened by the oil price
crash that has weakened the naira currency. Emefiele said
Nigeria's reserves of about $37 billion were robust enough to
support the economy and the bank would not stop dividend
repatriation.
Offshore investors have yet to get dollars to repatriate
funds since last month's lockdown aimed at curbing the spread of
the virus. The bank has said it wants to ensure an orderly exit
of investors. It added it would prioritise strategic imports or service
obligations for dollars to galvanise local manufacturing.
President Muhammadu Buhari has been trying to diversify the
economy away from oil by boosting the non-oil sector.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.