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The Central Bank of Nigeria has directed Nigerian banks to allocate 60 percent of their total foreign exchange purchases to the manufacturing sector, according to a circular published on Tuesday.

The apex bank said its directive came after it observed that only a negligible proportion of banks’ forex sales are allocated to end-users involved in the importation of raw materials, plants, and machinery.

“Authorized dealers are hereby directed to henceforth dedicate at least 60 percent of their total foreign exchange purchases from all sources (interbank inclusive) to end users strictly for the purposes of importation of raw materials, plant and machinery,” the CBN said.

“The balance of 40 percent should be used to meet other trade obligations, visible and invisible.”

In June this year, the CBN allowed the naira to float freely on the interbank forex market, resulting in a 40 percent devaluation of the currency. Under the new regime, Nigerian banks are to act as authorized dealers to bid for forex from the CBN and other market participants on behalf of their clients.

Nigeria’s manufacturing sector has been hit hard by forex shortages caused mainly by the decline in global oil prices, which reduced the country’s foreign exchange earnings.