CEMENT Producers Association of Nigeria, CPAN, has urged the Central Bank of Nigeria, CBN, to reconsider its foreign exchange forex policy that compels exporters to sell their forex earnings at the CBN’s official exchange rate of N197 to the dollar instead of allowing them to sell at the open market. Prince David Iweta, CPAN president, said the policy is retrogressive and a disincentive to investment.
Iweta, who is also president, Sapele Chambers of Commerce Industry Mines and Agriculture, said: “We are compelled to draw the attention of Mr. President to the economic danger that lay ahead of our dear country. While we hail the decision of the CBN policy that makes it mandatory to repatriate all exports proceeds back to the country within 180 days, the decision of compulsorily forcing exporters selling the proceeds at official exchange rate is one singular reason that the naira is exchanging at N280.00 to $1.00 as at today.
“This action of the CBN of not allowing non-oil exporter to use their earned forex 100 per cent to settle their own import bills or selling to the highest bidder of such privately earned proceeds at this critical period of acute shortage of forex has negatively affected exports of Nigerian commodities. We view this action as unprogressive, provocative, and destructive to businesses of export as it does not support export growth just as it does not make economic sense when our foreign reserve position can only supports three to four months imports.”
— Jan 18, 2016 @ 01:00 GMT