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  • CBN must review Foreign Exchange policy to improve dollar supply- LCCI

    CBN must review Foreign Exchange policy to improve dollar supply- LCCI

    The Central Bank of Nigeria needs to get its foreign exchange policy right to attract the needed investors that will improve the supply of the dollar this year, the Lagos Chamber of Commerce and Industry has said.

    The Director-General of the LCCI, Muda Yusuf, said this in an interview on Wednesday

    Nigeria’s foreign exchange policy had in 2020 deterred investment in Africa’s biggest economy. But the apex bank has since moved for a slow path to converge the rates.

    The apex bank in December 2020 moved the rates at the Investors and Export Window from N394 per dollar to N420.

    The movement to N420 by the CBN is getting closer to the rate at the parallel market which is currently at N470 as of the early hours of Wednesday.

    At the official rate, the CBN pegged the price at N379 per dollar. The collapse in oil in March made the apex bank to adjust the rates to N360 per dollar from the N307 previously held in 2015.

    Speaking on the development, Mr. Yusuf said, “The Exchange rate that we have is not a good thing for the market, so when we make the rates market driven and we unify the rates, it will bring stability to the market, it will inspire more confidence.

    “That step is in alignment with the exchange rate unification, which in the long run will be better for the economy.”

    The LCCI DG noted that the apex bank’s move to unify the naira at the different markets was not particularly centered on the demands of international lenders.

    In 2020 the the Federal Government was pressured by the World Bank and the International Monetary Fund to converge the naira as a condition to secure loans from the lenders.

    Mr. Yusuf said, “It is not even so much about the World Bank or the IMF, the issue is about getting the policies right. It is just in our own interest to get the policies right.

    “If getting the policies right now resonates with the IMF, that is fine. But we believe that apart from the IMF or the World Bank, we can unify the rates so that we can also improve the supply side of the foreign exchange market. Because under the previous arrangement many people who are willing to bring funds into the economy were reluctant to bring the funds.”

  • Osinbajo, LCCI discuss economy, Apapa gridlock, others

    Osinbajo, LCCI discuss economy, Apapa gridlock, others

    The Vice-President, Prof. Yemi Osinbajo, on Friday received a delegation of the Lagos Chamber of Commerce and Industry (LCCI), led by its President, Mrs Toki Mabogunje at the Presidential Villa in Abuja.

    Mabogunje, who spoke with State House correspondents after the meeting, said the delegation and the vice-president discussed issues bordering on the economy, infrastructure deficit and the perennial gridlock in Apapa, Lagos.

    She said there was need for the government to strengthen Public Private Partnership initiatives in infrastructure development.

    “We are looking at the state of the economy. We are looking at the progress government has made so far. What is still left to be done and the idea the private sector has on how we can move this country forward.

    “Some of the things we spoke on centered on the problem of infrastructure deficit. We already know there is the PPP partnership on the building and fixing of roads.

    “We have said that we should encourage more private sector participation.

    “We were informed that there is an infrastructure fund that has been set up for this purpose.’’

    Mabogunje said the private sector and LCCI could work with government to attract more investors and put more money into the infrastructure fund.

    “Secondly, we talked about Apapa gridlock. We were updated on progress so far. We have been told that the rail link to the port should be ready by the middle of this year.

    “We are very happy to hear that. We talked about other things that could be happening around port operations and relieving of the stress on the road for commuters.’’

    The LCCI said the discussion also covered private sector activities with the Federal Government–the presidential dialogue and the quarterly business policy briefings.

    According to her, the quarterly business forum has died a bit over the years.

    She said that the vice-president had promised that the quarterly presidential dialogue would be revived.

    Mabogunje described dialogue as a good platform for the business community to deliberate with the vice-president on issues of the economy.

    She said the LCCI was planning to host the vice-president in the third quarter of the year.

    Mabogunje also spoke about the Federal Government’s policy of Value Added Tax (VAT).

    “What we are saying about policy issue is that we recognise that government has revenue constraints and that the VAT issue that has just come is an attempt by the government to raise more capital for itself.

    “However, we feel that money should be directed towards filling the infrastructure gap, the infrastructure deficit.

    “That if that money is now taken and applied towards addressing infrastructure deficit, it would bring some relief to tax payers in terms of having better infrastructure to run their businesses and improve the country’s rating on the ease of doing business.’’(NAN)

  • LCCI reacts as Buhari assents to finance bill

    LCCI reacts as Buhari assents to finance bill

    The Lagos Chamber of Commerce and Industry (LCCI) has commended the federal government on some of the expected positive impacts of the finance bill signed into law by President Muhammadu Buhari.

    Its Director-General,Mr Muda Yusuf made the commendation in a statement made available to newsmen on Monday in Lagos.

    President Muhammadu Buhari on Monday signed the 2019 finance bill into law.

    The new law is targeted at reforming the Nigerian tax system to align with world best practices and supporting Micro, Small and Medium Enterprises through the ease of doing business initiative.

    It is also expected to improve revenue for the government as well as incentivise investments in infrastructure and capital markets.

    Yusuf said that a number of favourable provisions for small businesses were reflected in the finance bill, now signed into law.

    He said that the impact on government revenue would be positive, especially for states and local governments, as their fiscal position would be enhanced.

    He, however, expressed concern on the impact the Value Added Tax (VAT)increment would have on businesses and end users from the cost pressure perspective, due to the high cost in operating environment.

    Yusuf also expressed concern over the provision on minimum tax, saying that it was inappropriate to compel loss-making firms to pay tax, no matter how little.

    This, the Director-General explained, amounted to erosion of capital for such businesses.

    “The finance bill has a number of favourable provisions for small businesses and this is an aspect to commend.

    “However,  the VAT increment would impact adversely on businesses from cost pressures perspective.

    “Margins would be affected, depending on the extent to which additional costs could be passed to consumers.

    “We worry that we are operating in a high cost environment and also have the worry about the provision on minimum tax which we had argued against this provision.

    “It is inappropriate to compel loss- making firms to pay tax, no matter how little. This amounts to erosion of capital,” he said. (NAN)