By Yinka Kolawole
The Manufacturers Association of Nigeria (MAN) has welcomed the recent removal of Nigeria from the Financial Action Task Force (FATF) grey list, noting that the manufacturing sector stands to gain substantially from the delisting.
Director General of MAN, Segun Ajayi-Kadir, stated this in an exclusive interaction with Vanguard, adding that the delisting marks a positive turning point for Nigeria’s financial reputation and could ease financial frictions that have long constrained the country’s development trajectory.
He stated: “While the benefits cut across sectors, the manufacturing sector stands to gain substantially, as it is capital-intensive, trade-dependent, and highly sensitive to investor sentiment. The removal of Nigeria from the grey list addresses long-standing barriers that had constrained manufacturers’ access to global finance and cross-border transactions.”
Ajayi-Kadir specifically noted that the FATF delisting will lead to easier trade finance and correspondent banking; lower risk premium and cheaper external funding; improved investor confidence and portfolio flows; facilitate smoother diaspora and cross-border transactions; and ensure export credibility and market access. Citing the experiences of Pakistan and Turkey, he said in Pakistan, removal from the grey list restored investor confidence and revitalised trade and financial activities, though structural constraints continued to limit FDI in manufacturing.
He, however, warned that the pace and scale of capital inflows into manufacturing will depend on the domestic operating environment, noting that persistent structural bottlenecks continue to constrain competitiveness.
“To ensure that FATF delisting translates into tangible manufacturing outcomes, MAN urges the government and financial authorities to: establish targeted trade-finance windows for manufacturers; strengthen onshore credit channels; mobilise diaspora bonds and remittance-backed financing; and improve project readiness and industrial infrastructure,” the MAN DG added.
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