The Manufacturers Association of Nigeria Export Group (MANEG) has voiced strong concerns over a perceived policy imbalance following the Central Bank of Nigeria’s recent decision to grant International Oil Companies (IOCs) full freedom to repatriate their export proceeds. This shift by the apex bank, which effectively removes previous restrictions on foreign currency inflows for oil majors, has sparked a debate about fairness and the long-term goals of Nigeria’s economic diversification.
Under the new guidelines, oil companies are now permitted to retain and repatriate 100 percent of their earnings through authorized dealer banks. While this move is intended to modernize the foreign exchange market and restore investor confidence in the petroleum sector, non-oil exporters argue that the policy creates a lopsided playing field. They worry that focusing incentives primarily on the oil industry could undermine efforts to broaden Nigeria’s export base.
In an exclusive discussion with Reports, the Executive Secretary of MANEG, Dr. Benedict Obhiosa, noted that while a more liberal exchange regime is generally investor-friendly, this specific move raises questions about domestic liquidity. He explained that allowing more foreign currency to be sent offshore could inadvertently limit the supply of forex available within the local market. More importantly, he stressed that excluding non-oil exporters from similar concessions ignores the very businesses critical to moving the country away from its over-reliance on crude oil.
Dr. Obhiosa pointed out that without comparable incentives for those outside the oil sector, the national agenda for a diversified economy faces a significant setback. He urged policymakers to introduce balancing measures that support all exporters, ensuring that the drive for economic growth remains inclusive and sustainable for manufacturers across the board.
Contrastingly, players within the downstream oil and gas sector have welcomed the central bank’s decision, viewing it as a timely intervention during a period of global economic uncertainty. For indigenous manufacturers of products like lubricants, the policy is seen as a lifeline. Mashood Sanni, a manager at LUBCON Group, told Reports that improved forex availability is vital for local producers who rely on imported raw materials. He believes the change will ease procurement hurdles and boost the competitiveness of Nigerian-made goods in both local and international markets.
While the oil sector celebrates the move as a step toward industrial growth and stability, the broader manufacturing community remains watchful. The tension highlights a delicate balancing act for the government: attracting massive foreign investment into the oil sector while ensuring that the “engine room” of the non-oil economy is not left behind in the race for a stable and prosperous Naira.
