ENUGU, Nigeria (VOICE OF NAIJA)- Amidst the ongoing depreciation of the Naira against the United States dollar in the foreign exchange market, Nigeria’s manufacturers are contemplating another round of price hikes for commodities in the market.
Francis Meshioye, President of the Manufacturers Association of Nigeria, revealed this in a statement over the weekend, addressing the persistent forex crisis in Nigeria.
Meshioye stressed on the need for manufacturers to adapt their strategies to cope with the current economic challenges.
With the Naira quoted at N1,410 per US dollar in the parallel market and N891.90 in the official market, Meshioye expressed concerns about the impact on profitability, stating, “It is not possible to remain profitable with this exchange rate. The first challenge is breaking even.”
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He further explained that the anticipated price hikes could lead to reduced consumer demand as goods become more expensive, posing a challenge to the bottom line of manufacturers.
Meshioye stressed the importance of revising business strategies regularly to adapt to the evolving economic reality.
In the face of these economic uncertainties, businesses are urged to break even during these challenging times.
“It means the prices of things will be higher, and the income is not there for people to buy things as they should as things become more expensive.
“So, the demand will become low, affecting our bottom line. The break-even point will become critical.
“So, what businesses should do is to ensure that they break even at this time. It is a necessary and very challenging time for us.
“It is a harsh time, so we must revise our strategy. It is hard for us to have a long-term plan, and even the short-term plans, we have to regularly revise them to incorporate the reality of the economy into it”, he said.
The Naira’s mixed sentiment, appreciating in the official market but depreciating in the parallel market, adds to the complexity of the situation.