Dr. Emmanuel Iheagwazi, Chairman and Chief Executive Officer of Necit Nigeria Limited, a leading manufacturer of locally produced lubricants, has voiced strong concerns over the detrimental impact that commercial banks and government agencies are having on Nigeria’s manufacturing sector.
Speaking at a press briefing titled *“Challenges the Manufacturing Sector Faces with Nigerian Commercial Banks: The Necit Nigeria Limited Story”*, Dr. Iheagwazi highlighted the significant difficulties manufacturers encounter, particularly in sourcing foreign exchange (FX) for purchasing essential materials. He noted that Necit’s lubricant production relies on 40% local and 60% imported materials, and securing FX has become increasingly challenging. “It’s easier for a camel to pass through the eye of a needle than for a manufacturer to source foreign exchange,” he remarked.
Dr. Iheagwazi criticized the banks for adding to these challenges by demanding additional payments when FX rates rise after transactions have been completed. “Things were better before the naira’s devaluation. Now, we’re barely surviving, and it’s killing our business,” he lamented.
He further accused banks of charging arbitrary fees on loans and withholding payments made by customers, actions he believes are driving many manufacturing companies out of Nigeria. “This is why most manufacturing companies are leaving the country,” he added.
In addition to banking challenges, Dr. Iheagwazi pointed out the excessive charges imposed by government regulatory agencies. He explained that customs duties on imported raw materials have skyrocketed from ₦2.5 million to about ₦16 million per container, exacerbating the financial burden on manufacturers.
Supporting these concerns, Necit’s General Manager, Mr. Onu Obasi, warned that if these challenges persist, the company may be forced to shut down, potentially leaving over 2,000 workers unemployed. “You know what that means—more youths will be without jobs, and idle hands are the devil’s workshop,” he said.
Mr. Seyi Okunuga, the company’s Financial Controller, echoed these sentiments, arguing that commercial banks declare excessive profits by exploiting manufacturers through difficult FX procurement processes and arbitrary loan charges.
Dr. Iheagwazi called on the President of Nigeria and the Governor of the Central Bank of Nigeria to address these sharp practices by commercial banks. He warned that if the excesses of these banks are not curbed and tariffs on imported raw materials are not reduced, many manufacturers may either shut down or leave the country altogether.
