Economy
CBN Forex Exclusion Policy Dangerous to Economy—LCCI
By Dipo Olowookere
The Central Bank of Nigeria (CBN), in order to stimulate economic growth and boost local production in the country, restricted the supply of foreign exchange (forex) to some items that can be easily produced in Nigeria.
This gave rise to the 43 items on the forex restriction list. What this means is that importers of items on the list would not be able to get foreign exchange directly from the windows created by the apex bank to bring the products into the country, but only at the black market.
Recently, the central bank announced the addition of milk to the list and this generated mixed reactions from Nigerians, experts and economists.
Also commenting on the matter was the Lagos Chamber of Commerce and Industry (LCCI), which said the forex restriction policy of the CBN was harmful to the nation’s economy.
According to the agency, Nigeria is not ripe for the forex restriction policy on milk importation because it would create a crisis of immense proportions in the dairy industry supply chain and put investments worth billions of dollars at risk.
The LCCI noted further that the policy will do more harm than good, both to investors and the citizens because it would trigger avoidable disruptions and dislocations in the investment environment and further undermine investors’ confidence and create huge supply gaps in the market with severe harmful consequences.
“We currently do not have dairy cows in the country. The dominant milk producing system in Nigeria is the Fulani Nomadic System whose cows have a milk yield of less than two litres a day; whereas, a good dairy cow will produce an average of 28 litres of milk per day over 10 months.
“During peak lactation, a high yielding dairy cow can produce as high as 60 litres of milk per day. The reality is that Nigerian cows have very low yield because of poor genetic composition, poor feeding practices and the laborious nomadic system of breeding. These are fundamental issues that we need to fix before contemplating any form of import restriction.
“These are challenges to be posed to the Federal Ministries of Agriculture and Water Resources at the federal and state levels as the present administration moves to the next level. These are the agencies of government that have primary responsibilities for such matters. The environment needs to be created for these investments to happen,” the agency said in a statement to react on the matter.
In the statement signed by its Director General, Mr Muda Yusuf, the LCCI warned that the policy could lead to a massive job loss, pointing out that, “There are over one million direct and indirect jobs that will be in jeopardy across the value chains of these industries.”
“These companies engage Nigerians as employees, distributors and retailers as well as thousands of suppliers and service providers who are dependent on these businesses for their livelihood. For a country that is grappling with unemployment crisis, the consequences will be too grave. Therefore, there are profound investments, economic, nutritional and social issues to worry about,” it said.
The agency said additionally, such policy will boost the smuggling economy since there will be an estimated 50 percent short fall in the supply of dairy products to the Nigerian market, with the supply gaps creating scarcity and put the prices of the products beyond the reach of the average Nigerian.
It further warned that there would be loss of revenue to the government as smugglers naturally move to fill the supply gaps in the market, adding that there is a major risk of closure/drastic scaling down of operations of existing investments in the dairy industry.
According to the LCCI, there will be a higher risk of malnourishment of citizens especially children and the low-income earners, heightened risk of loss of jobs in the dairy sector, while neighbouring countries will profit from the increased smuggling triggered by the policy, as the Nigeria ports and maritime sector workers loose revenue and jobs to the ports of the neighbouring countries.
In the statement, the LCCI urged the CBN to give enough timeline to diary companies for a sustainable transition from the current state of affairs to the desired level of backward integration in the dairy industry.
“There should be robust incentives to attract investors to the supply chain in the dairy industry in line with the backward integration aspiration.
“The ministries of Agriculture and Water resources should take on the challenge of driving this change process through the creation of incentives for modern animal husbandry facilities and practices.
“There should be generous support from government to facilitate the importation of cattle breed [dairy cows] suitable for milk production, it said.
“On account of the foregoing, we urge the CBN to put on hold its proposal to exclude the dairy industry investors from the foreign exchange market in order to save the economy of the consequential shocks, business disruptions, investment dislocations and job losses,” the LCCI concluded in the statement.
By Aduragbemi Omiyale
A Community Development Service (CDS) group focused on investment education for corps members is to be established by the National Youth Service Corps (NYSC) in partnership with the Securities and Exchange Commission (SEC).
Both organisations recently sealed a Memorandum of Understanding (MoU) for this new initiative, which will promote sound investment habits among Nigerian youths, equip corps members with essential financial knowledge and help them avoid fraudulent schemes.
Under the agreement, the NYSC and SEC will work together on joint awareness campaigns, utilising various channels and platforms, including social media, traditional media, and community outreach, to disseminate information on safe investment and expose fraudulent schemes.
They will also agree on mechanisms for sharing relevant data and reporting on the progress and impact of the collaborative initiatives.
Specifically, the capital market regulator will develop and provide relevant and up-to-date educational content, materials, and training modules on capital market operations, safe investment practices, and the identification and avoidance of Ponzi schemes.
The agency will also be responsible for the content, resources and funding of training sessions for selected corps members and NYSC supervisors who will serve as trainers and facilitators in their respective communities.
On its part, the NYSC will facilitate the integration of anti-Ponzi scheme education into its Education and Enlightenment CDS programme, which could be through dedicated sessions, workshops, or awareness campaigns during orientation camps and throughout the service year.
The Director General of SEC, Mr Emomotimi Agama, expressed satisfaction with the collaboration, saying it will promote financial literacy and sound investment habits among young Nigerians.
His counterpart at the NYSC, Brig-Gen Olakunle Nafiu, lauded the initiative, stressing that it will help in enhancing public awareness campaigns against illegal financial schemes across all Local Government Areas in the country, among other objectives.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange opened the week on a positive note after it appreciated by 0.84 per cent on Monday, March 23.
Trading activity returned yesterday after a two-day break last Thursday and Friday to celebrate the end of Ramadan.
The market capitalisation was up by N20.68 billion to N2.482 trillion from N2.461 trillion, and the NASD Unlisted Security Index (NSI) increased by 34.68 points to 4,149.38 points from 4,114.75 points.
The bourse was bullish amid a 1.34 per cent decline in the share price of Geo-Fluids Plc at the close of transactions. The loss was offset by the 3.45 per cent surge in the value of FrieslandCampina Wamco Plc.
A look at the trading data indicated that the activity was weaker yesterday, as the trading volume, value, and number of deals all tumbled.
There was a 99.9 per cent slip in the volume of securities to 412,260 units from the 400.8 million units recorded in the preceding session. The value of securities fell by 99.4 per cent to N7.37 million from N1.2 billion, and the number of deals went down by 31.9 per cent to 32 deals from 47 deals.
Central Securities Clearing System (CSCS) Plc ended the day as the most traded stock by value on a year-to-date basis with 38.7 million units sold for N2.4 billion. Infrastructure Guarantee Credit Plc followed with 400 million units valued at N1.2 billion, and Okitipupa Plc occupied the third spot with 6.4 million units traded for N1.2 billion.
Resourcery Plc closed the trading session as the most active by volume on a year-to-date basis with 1.1 billion units worth N415.7 million, trailed by Infrastructure Credit Plc with 400 million units transacted for N1.2 billion, and Geo-Fluids Plc with 131.1 million units exchanged for N505.6 million.
By Aduragbemi Omiyale
The need for the continent to embrace shared ownership by scaling to remain competitive on the global market will be the focus of the Africa CEO Forum 2026, slated for May 14 and 15, in Kigali, Rwanda.
A statement from the organisers disclosed that the programme will task public and private leaders to commit capital, share risk and build transnational African ownership to secure the continent’s long-term prosperity.
This is because, as multilateralism is challenged, capital flows are reshaped, and leading economies leverage their corporate champions to project global influence.
The ability of Africa to rely on competitive, agile and internationally integrated corporate champions has become a defining corporate imperative. In this shifting global landscape, one lesson is clear: scale is no longer optional. It is the first line of defence.
To prepare the continent for this, the forum will bring together over 2,000 CEOs, investors, heads of state and public decision-makers from over 75 countries to discuss ways to achieve the scale necessary to compete, integrate and thrive in a fragmenting world.
This is because reaching the necessary scale will require more than removing physical and regulatory barriers. It will mean embracing a new mindset anchored in a new vision: shared ownership.
Business Post gathered that the event will explore three strategic levers to build continental scale: shared equity, shared infrastructure, and shared frameworks.
For the shared equity, the forum will look into how to unlock cross-border equity investment to create multinational African champions. Mobilise African institutional capital across markets to strengthen resilience and enhance long-term returns.
As for the shared infrastructure, participants will explore ways to design complementary infrastructure to integrate African value chains, champion transformative projects that serve regional, not merely national, needs and create truly connected markets.
Under the shared frameworks, they will brainstorm on how to harmonise standards, rules and regulations to boost investor confidence and enable the free flow of capital, goods and services. They will also discuss ways to build future-proof digital rails for health, education, agriculture and cross-border payments.
“If Africa wants to compete in a world defined by scale, it must move beyond economic patriotism and embrace a new model,” the president of Africa CEO Forum, Mr Amir Ben Yahmed, stated.
“Africa has the capital and the opportunity to grow and create quality jobs. What matters now is putting that capital to work at scale. That means building trust, sharing risk, and investing across borders,” the Managing Director of the International Finance Corporation (IFC), Makhtar Diop, stated.
The Africa CEO Forum is organised by Jeune Afrique Media Group and co-hosted by IFC to gather leaders to connect policy and private investment, and to help shape Africa’s next phase of growth.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn