Recently, CBN began to provide US $100 million in weekly sales to small businesses and individuals who really need foreign exchange.
Despite this, CBN Governor Godwin Emefiele insisted a few days ago that there is no shortage of dollars, and when the blockade caused by COVID-19 is fully alleviated, sales will return to the change.
At the same time, according to Bloomberg News, even if manufacturers have many naira to trade, manufacturers are facing difficult times, they are difficult to obtain US dollars to meet their foreign exchange obligations.
Against the backdrop of falling crude oil prices and the deadly COVID-19 pandemic (reducing the country ’s foreign exchange earnings), CBN has been allocating foreign exchange to protect the naira.
In a country that imports all major products used by pharmaceutical companies, the scarcity of dollars and the weak naira have exacerbated inflation.
“Manufacturers can’t open letters of credit as dwindling oil receipts and the lack of intervention by the central bank pushed international banks to withdraw credit relationships with local lenders,” Fidelis Ayebae, CEO of Fidson Healthcare Nigeria Plc said.
“You now have a situation where nobody is holding letters of credit, no manufacturer is getting anything from their suppliers abroad because even the ones that we owe, we are not able to pay,” said Ayebae, who also heads the 180-member pharmaceutical group of Nigeria’s manufacturers’ association. “Some companies may shut 45 days from now if they are not able to import.”
Due to current unfavorable factors, the pharmaceutical company ’s administrative costs have increased by at least 22%. If the dollar shortage persists, it may be forced to shut down operations from July.
According to Bloomberg News, the drugmaker received $ 2.5 billion from the central bank’s COVID-19 intervention fund, but he only received $ 80,000.
“I need dollar equivalent of N2.5 billion. If I get $5 million today, I will be an incredibly happy man,” he concluded.