Fidelity bank card banner Camano banner
LCCI faults CBN, calls for review of foreign exchange policy

By News Express on 12/07/2015

Views: 3,250


The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to review its foreign exchange policy for imported goods.

LCCI made the call in a statement signed by its Director-General, Mr Muda Yusuf, which was made available to newsmen on Sunday in Lagos.

The chamber disapproved of the apex bank’s policy which restricted 41 imported goods from accessing foreign exchange from the bank.

It said that the policy would serve as a disincentive to the Nigerian manufacturing sector and the economy.

The statement said that the restricted items included critical elements of the manufacturing process of many firms, across sectors in the country.

It said: “The policy means that manufacturers who require any of the 41 restricted items as inputs and raw materials for their production may have to simply shut their operations once their existing stock is exhausted.

“The LCCI understands the CBN’s constraints and circumstances, as it drew up this policy.

“It, however, appears as if the formulation of the policy has suffered from the CBN’s limited understanding of the manufacturing process of many of the sectors affected by this policy.”

The News Agency of Nigeria (NAN) recalls that the CBN on June 23 said that it was imperative to exclude importers of some goods from accessing foreign exchange.

It added that the directive was aimed at encouraging local production of the items.

The chamber, however, noted that the policy was ambiguous as the restricted items were not well-defined and specific.

It stated that the ambiguity had plunged both manufacturers and banks into confusion regarding the intent of the CBN.

It, therefore, urged the apex bank to amend the policy with full product definition, specification of all restricted items, including their HS Codes and excluding any items which are non-substitutable industrial raw materials from the list.

The chamber, therefore, called for appropriate time frames for items which required some interval before local substitutes can be created for imported raw materials.

It reminded the CBN and the Federal Government that manufacturers had yet to recover from the losses they suffered due to the recent currency devaluation.

According to LCCI, “Compounding recent devaluation losses with higher costs and the complete inability to source critical raw materials may push many firms over the precipice.

“This may result in business closures, job losses, declined manufacturing sector production and greater social tension.”

It urged the CBN and the Federal Government to consider palliatives and incentives to prevent such a scenario.

The chamber stated that the fundamental forces the apex bank was struggling against were economic and fiscal policy dependence.

It said the Bank continues to exert monetary policy tools almost to a point in which economic harm may result.

The chamber, therefore, listed the fundamental factors as: diversification of the economy in terms of exports and government revenue, issues around the deregulation of the downstream oil sector and the fiscal regimes of the upstream oil sector.

Others are the power sector’s efficiency, creating alternative economies in solid minerals, agriculture, manufacturing and a robust export-driven economy.

“These matters cannot be resolved through exclusive deployment of monetary policy tools,” LCCI stated.

The chamber added that harmonisation of CBN policies with other government agencies was critical, to avoid cross purposes and for economic development.

It, therefore, urged the apex bank to avoid policies that may produce oligopolistic and monopolistic outcomes, which the chamber noted, were at variance with its mandate of building a sound economy.

It recalled that on July 9, LCCI organised a stakeholders’ forum on the policy, which was attended by representatives of the CBN and the organised private sector, including the manufacturing sector.

The chamber said that the outcome of the forum formed the basis of the forum’s communique for government's immediate action.

It, therefore, urged for increased engagement and consultation between the CBN and the private sector, for adequate understanding of the impact of its policies on the manufacturing sector. (NAN)

•Photo shows LCCI DG, Muda Yusuf.

Source News Express

Posted 12/07/2015 5:59:53 PM

 

 

CLASSIFIED ADS

 

You may also like...
Obiano’s wife trains additional 160 women, widows in...

FG set to kick-start moves to end herdsmen/farmers...

Gas Marketers task FG on policies to deepen...

President Buhari behind my ordeal —Dasuki

Kerosene now sells for N400 per bottle in...

US, UK legislators more expensive to maintain than...

Declare your state of health now, rights groups...

Tuface, MI, Chidinma release song against vote-buying

What is stalling the Aba Power Plant?

Rangers poised to break 32 years jinx, vow...

EFCC to investigate abandoned projects across the country...

NCC fines Glo, MTN N34m for number portability...

 

Latest News BREAKING: Buhari appoints Kyari NNPC GMD Iran's Revolutionary Guard shoots down US 'spy' drone The elephant in the room, a dent on its trunk, By Najatu Muhammad Suspect who made N200m from kidnapping in 6 months paraded in Abuja 300-level UNIBEN student commits suicide over alleged heart break Gunmen attack passenger bus in Rivers, abduct travellers Troops destroy Boko Haram camps in Borno, rescue children, women Police teargas, arrest 12 in Anambra during protest over 44-year-old land tussle Kidnapped ex-Health Minister’s son regains freedom INEC retrieves, re-issues over 70 Certificates of Return Court stops el-Rufai from licensing pastors in Kaduna Senate President Lawan retains Saraki’s aides

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (495,139 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (425,813 views) Shameless Genevieve Nnaji exposes breasts in public (365,699 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (312,272 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (276,542 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (244,201 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (234,241 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (216,131 views) 10 cars more expensive than Jets (213,267 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (204,681 views) Lagos plane crash: Journalist releases victims’ names (184,747 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (184,023 views)

 

NNPC 2019 National Science Quiz Competition

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (94) Business & Economy (4,318) Business Verdict (74) Columnists (1,052) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (624) Features (762) Global Business Monitor (380) ICT Monitor (53) International (3,608) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (305) News (47,537) Opinion (1,263) Pidgin (17) Politics (11,041) Religion (1,026) Sports (2,045) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera