Manufacturers Smile as Stable FX Brings Down Financing Cost

Major manufacturing companies are now witnessing a decline in their financing cost following stable exchange rate, their resort to cheaper sources of borrowing as well as the adoption of other cost reduction strategies, THISDAY’s investigation has revealed.

It was gathered that reliance on bank loans by many companies and the forex scarcity experienced in the country in 2016 had pushed up cost of finance of most companies to very high levels.

This, it was learnt, had led to some of them recording decline in profitability between the 2016 and 2017 financial year.

However, THISDAY checks showed that the situation has improved significantly as most manufacturing firms continue to witness decline in financing cost, a development analysts attributed to the stable exchange rate and recourse to cheaper sources of funding such as equity capital injection and issuance of commercial papers (CPs).

THISDAY, November 15, 2018

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now