Forex restriction by CBN may crumble many businesses in 2016 – Zinox boss

The restriction placed on importers of some 41 items in accessing forex and other directives restricting forex may actually lead to the collapse of many businesses in the country, Chairman of Zinox Group of Companies, Leo-Stan Ekeh has said.

While addressing a cross section of newsmen in Lagos recently, Ekeh said that Nigerian businessmen are going through harrowing times to sustain their businesses now due to the forex restrictions imposed by the present administration, adding that perhaps less than one per cent of Nigerian businessmen will still be standing if current realities remain till March this year.

The Zinox boss lamented that not being able to source adequate foreign exchange to transact business has made a lot of businesses lose credibility in international market and if that continues the entire economy may shut down.

However, he also expressed optimism that the Nigerian economy can never shut down totally but warned that “the shocks and gaps in the economy at the moment represent our current realities and we must find creative ways to navigate this harsh economic climate.

He said that the organized private sector holds the key to a way out of the present quagmire, adding that President Buhari should engage the private sector to save Nigeria because the three levels of the sector drives over 80 per cent of Nigeria’s economy.

“Recall that in the run-up to last year’s elections, President Buhari met with representatives of the private sector in Lagos to present his party’s economic plans. This and other engagements certainly went a long way in contributing to his victory at the polls. It is my considered opinion that the time is right for the President to enlist the support of the sector in finding a way out of the current economic challenges,” he added.

He said the unprecedented fall in the price of crude oil is a global phenomenon which evens the smartest economist couldn’t have predicted. He however, blamed successive governments for failing to save for times like this when the prices of crude were high.