By Ireti Asemota.
The Manufacturers Association of Nigeria (MAN) has welcomed Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list, highlighting the significant potential benefits for the manufacturing industry.
In an exclusive interview, Segun Ajayi-Kadir, the Director General of MAN, described the delisting as a major milestone for Nigeria’s financial reputation. He added that it could ease the financial hurdles that have long hindered the country’s development.
Ajayi-Kadir emphasized that while the delisting benefits multiple sectors, the manufacturing industry, being capital-intensive and highly reliant on trade, stands to gain the most. “The FATF delisting addresses persistent challenges that have restricted manufacturers’ access to global finance and hindered cross-border transactions,” he said.
The MAN DG outlined several specific advantages, including:
- Improved access to trade finance and correspondent banking
- Reduced risk premiums and cheaper external funding
- Enhanced investor confidence and increased portfolio flows
- Smoother cross-border transactions, including those with the diaspora
- Strengthened export credibility and greater market access
Referencing the experiences of Pakistan and Turkey, Ajayi-Kadir noted that while Pakistan’s removal from the FATF grey list restored investor confidence and boosted trade and financial activities, structural challenges in the country still limited FDI in the manufacturing sector.
He cautioned, however, that the pace of capital inflows into Nigeria’s manufacturing industry will depend on the domestic business environment. Ongoing structural issues may continue to impact competitiveness.
“To ensure that the FATF delisting results in tangible benefits for the manufacturing sector, MAN urges the government and financial regulators to establish dedicated trade-finance channels for manufacturers, enhance local credit access, tap into diaspora bonds and remittance-backed funding, and improve industrial infrastructure and project readiness,” Ajayi-Kadir concluded.
