…suggests ways to reverse trend
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has decried the continuous mass exodus of businesses from the country, attributing the trend to the ineffective monetary policies from the Central Bank of Nigeria (CBN).
In a statement, the National President of NACCIMA, Dele Kelvin Oye Esq., hinted on strategies and policies to reverse the trend and create a more favourable business environment to attract and retain businesses in the country.
He said, “The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) is deeply concerned about the alarming continuous trend of companies, including notable entities like Pick n Pay, exiting Nigeria.
“This situation is largely attributed to ineffective monetary policies from the Central Bank of Nigeria (CBN), which have resulted in substantial foreign exchange losses for businesses.
“Compounding this issue are the opaque practices within the oil and gas sector under the Nigerian National Petroleum Corporation (NNPC), leading to inflation in gas and petrol prices after the removal of subsidies.”
To reverse this trend and create a more favourable business environment, NACCIMA proposed the following strategies:
“The CBN must implement transparent and stable policies that will encourage investment and stabilize the naira. Under no circumstances should the naira exceed 1000 to 1 USD. Furthermore, the CBN needs to positively discourage individuals and businesses from holding their monies in foreign currency in domiciliary accounts, a program of continuous appreciation of the Naira. Collaborating with the existing Bureau de Change is crucial, as CBN’s current attempts to restructure or displace these entities have not stemmed the naira’s depreciation; in fact, they have contributed to it.
“The NNPC must establish a clearer and more predictable framework for the oil and gas sector to restore investor confidence. It is imperative to resolve the ongoing ambiguities in its relationship with Dangote Refinery, enabling the refinery to sell fuel at lower prices and allowing Nigeria to genuinely benefit from its strategic location and capacity. We need a date for the resumption of the Port-Harcourt Refinery.
“NACCIMA is dedicated to promoting non-oil exports and calls upon the government to support genuine stakeholder engagement. This collaboration is essential to creating supportive frameworks that empower exporters to meet the burgeoning demand for Nigerian products, particularly in China and other international markets, as our current exports barely meet 5 percent of the existing demand.”
Other strategies listed by NACCIMA to reverse the trend and ensure a conducive business environment in the country include:
“There is an urgent need for open dialogue among the government, private sector, and civil society. This collaboration is critical for developing tailored solutions to the economic challenges facing our nation.
“Comprehensive reforms are necessary to improve the overall business climate, ensuring sustainable economic growth and attractiveness for both local and foreign investors.”
Oye further charged, “We call upon all stakeholders to unite in building a conducive business environment that supports growth and prosperity in Nigeria. If the CBN continues its current trajectory of naira depreciation and if we do not address the significant challenges in the relationship between NNPC and Dangote Refinery, there will be further foreign exchange losses from naira depreciation, we risk further corporate closures and exits from Nigeria.”
