MAN Implores CBN To Reverse Third-Party Procurement Policy 

The Manufacturers Association of Nigeria has urged the Central Bank of Nigeria to reverse its new policy directing authorised dealers to desist from opening of Form M, whose payments are routed through a buying company or any other third parties.

MAN in a statement signed by its President, Mansur Ahmed, said the association acknowledged the good intention of the apex bank, but said the impact of the decision was inimical to the survival of many manufacturing concerns that were not involved in any unethical practice.

The body said the additional hamstring on the economy was likely to erode the recent improved performance on the ease of doing business ranking. “Given the prevailing extremely stressful operating environment our fragile manufacturing sector is contending with, the implementation of this new directive is like hammering the last nail on the coffin of many of our ailing members,” the statement noted.

The association pointed out that most manufacturers, especially small and medium-sized enterprises, deal with accredited agents for their supplies as many Original Equipment Manufacturers abroad did not sell directly to individual buyers.

 It also noted that it was in line with global best practice for OEMs and large International Manufacturing Companies operating in multiple countries and with sourcing needs in various jurisdictions to leverage on the economics of scale to secure lower prices through centralised procurement.