Nigerian manufacturers are struggling to stay in business because a foreign-exchange shortage spawned by the collapse in oil prices means they can’t import raw materials.
The industry’s difficulties are the latest signs of strain in Nigeria’s foreign-exchange regime. The central bank was forced to devalue the naira in March as income from crude sales that generate 90% of the West African nation’s export earnings dried up. Foreign investors looking to repatriate their funds have been asked to be patient.
Members of the Manufacturers Association of Nigeria have been unable to access hard currency for the past five weeks, the group said in a report at the weekend. Investment bank FBNQuest estimates there’s a $1 billion backlog of unmet dollar demand in Nigeria.