Forex restriction order will compound Nigeria’s woes in 2016

The non-adjustment of foreign exchange rate by the Central Bank of Nigeria as well as the forex restriction order placed on key commodities will have adverse effect on the non-oil sector in 2016, says LCCI.

Speaking in Lagos at the weekend, the Director General of the Lagos Chamber of Commerce and Industry, Muda Yusuf who disclosed this said the Lagos Chamber of Commerce and Industry and the business community are very concerned about the current state of the economy and the consequences of the CBN approach to the management of foreign exchange market over the last few months.

According to Yusuf, forex restriction order placed on some 41 key commodities if not revisited would lead to closure of more factories and job losses in manufacturing companies.

“We have previously engaged the CBN and other authorities through several fora (including dialogue sessions and memoranda) to draw attention to the implications of forex policies on businesses and the economy,” he said.

He advised the federal government to put in place palliative measures in form of fiscal and monetary policies that would pave the way for quick economic recovery in the first quarter of 2016, adding that there also the need to for the CBN to review the forex restriction order.

Speaking further, the LCCI boss said that if the right fiscal measures are put in place, not only would it encourage foreign and domestic investments, but also the country’s Gross Domestic Product growth was expected to rebound slowly to about 3.5 per cent

“Our stance is that we want the CBN to lift the ban on foreign exchange now because government needs to do something urgently to convince Nigerians, private sector operators and manufacturers in the New Year. We believe that removal of the ban on forex and adjustment of the exchange rate will make substantial impact on our economic recovery next year.