Nigeria’s manufacturing sector is turning inward for survival as the impact of the naira devaluation and foreign exchange scarcity continues to reshape supply chains across the country.
This is according to a news report over the weekend, which highlighted how volatility in the forex market is forcing companies to reduce their dollar reliance and turn to local raw material sourcing. According to the report, firms that previously depended on raw material imports are increasingly embracing local supply chains to ease pressure on foreign exchange.
This decision followed the Central Bank’s decision to float the naira, part of President Bola Tinubu’s reform agenda aimed at reviving growth and attracting investors, which triggered unprecedented volatility. Manufacturers, who contribute about nine per cent of Nigeria’s GDP, were left scrambling as the naira tumbled and dollar inflows dried up.