LCCI Says Forex Pressure Undermining Investments, Putting Jobs At Risk
The difficulties faced by many investors in Nigeria in accessing foreign exchange for importation of raw materials, equipment and some critical inputs for production and processing is putting investments and jobs at risk, the Lagos Chamber of Commerce and Industry has said.
The President, LCCI, Mrs Toki Mabogunje, said on Wednesday that the chamber was concerned about the divergent positions of both the fiscal and monetary authorities regarding the country’s foreign exchange framework.
“Lack of cohesion among policymakers sends a negative signal to the investment community, worsens uncertainty, and further dampens investor confidence,” she said on Wednesday at the chamber’s quarterly press conference on the state of the economy.
According to her, it is important for the fiscal authorities, the Central Bank of Nigeria and the Economic Advisory Council to be on the same page as far as the country’s forex policy framework is concerned.
Mabogunje said the country’s forex policy framework needed to be reviewed to expand the scope of market mechanism in the determination of exchange rate.
“It is critically important for policymakers to harmonise the multiple exchange rates into a single market-reflective rate, which is imperative in strengthening investor confidence and engendering macroeconomic stability,” she said.
She said the unification of exchange rates would complement recent efforts by the CBN geared at enhancing liquidity at the supply segment of the foreign exchange market.
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