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 Adedapo Adesanya
The prices of the two major crude oil grades moderated on Friday amid news of an Iranian proposal on negotiations with the United States. However, prices remained on track for weekly gains, with Iran still blocking the Strait of Hormuz and the US Navy blocking exports of Iranian crude.
Brent crude settled at $108.17 per barrel after losing $2.23 or 2.02 per cent, while the US West Texas Intermediate (WTI) crude finished at $101.94 a barrel after giving up $3.13 or 2.98 per cent. Both benchmarks gained 2.9 per cent over the week.
It was reported on Friday that Iran sent its latest proposal for negotiations with the US to Pakistani mediators on Thursday, a move that could improve prospects for breaking an impasse in efforts to end the Iran war.
Oil prices have been on the rise since the US and Israel attacked Iran at the end of February, resulting in the closure of the Strait of Hormuz and the disruption of shipments of about a fifth of the world’s oil and liquefied natural gas supply.
Although a ceasefire has been in place since April 8, the oil market appeared to be accepting the uneasy truce in the conflict since Iran had already said and signalled that it won’t open the chokepoint to free traffic and won’t return to negotiations unless the American blockade is lifted.
There are fears of an escalation amid reports that US President Donald Trump would be briefed on further military options to force Iran’s hand to sign a deal, which could involve a ground operation.
Prices could spike to $140 per barrel, according to the Speaker of Iran’s Parliament, Mr Mohammad Bagher Ghalibaf, saying the US Administration is getting “junk advice” from people like [Treasury Secretary] Bessent, “who also push the blockade theory and cranked oil up to $120+. Next stop:140.”
The United Arab Emirates’ departure from the Organisation of the Petroleum Exporting Countries (OPEC) this week may still mean that the market’s most striking feature in the next few years is not too little supply, but too much. It left the cartel to boost production (target ~5 million barrels per day by 2027) and gain full control over its oil strategy and global partnerships.
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to prioritise reforms that address constraints in the manufacturing sector as it tackles broader macroeconomic and fiscal challenges facing the Nigerian economy.
President of LCCI, Mr Leye Kupoluyi, gave the advice on Thursday in Lagos, at the chamber’s quarterly state of the nation’s economy news conference.
He stated that the manufacturing sector remained a critical driver of revenue and industrial growth, citing a strong performance in 2025.
Mr Kupoluyi noted that the sector contributed N1.17 trillion in Value Added Tax (VAT), representing a 45.61 per cent increase from N803.53 billion recorded in 2024, adding that the Company Income Tax (CIT) from the sector rose to N881.29 billion, up by 32.83 per cent from N663.46 billion in the previous year.
“This strong year-on-year growth reinforces the sector’s expanding role in generating government revenue and in Nigeria’s industrial development.
“Following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions,” he said.
On the global terrain, the LCCI president noted that the global economy remained unsettled, shaped by geopolitical tensions, supply chain disruptions and monetary tightening in advanced economies.
He said these trends had sustained inflationary pressures globally, while exposing emerging markets, including Nigeria, to capital outflows and currency volatility.
Mr Kupoluyi noted that Nigeria had benefited from high crude oil prices, warned against mismanaging the resulting windfall, urging the government to channel oil revenues into the Sovereign Wealth Fund, critical infrastructure and diversification initiatives to reduce import dependence and support long-term growth.
On monetary policy, the chamber’s president commended the Central Bank of Nigeria’s Monetary Policy Committee for reducing the Monetary Policy Rate by 50 basis points to 26.5 per cent at its February meeting.
He described the move as a cautious but important shift, reflecting growing confidence amid improvements in inflation and external sector performance.
Mr Kupoluyi also highlighted improvements in the foreign exchange market, noting that the naira had shown relative stability and appreciated to about N1,350.79 to the Dollar in the official market.
He said the performance reflects improved liquidity, investor confidence and the impact of ongoing reforms, but called for stronger policy coordination, increased FX inflows and fiscal discipline to sustain stability.
On fiscal operations, the LCCI president raised concerns over weak capital budget implementation, citing the rollover of N7.71 trillion in unexecuted 2025 capital projects.
He said delays in fund releases, bureaucratic bottlenecks and inefficiencies had continued to undermine project delivery and strain contractors.
He urged the government to develop a more effective framework for capital budget releases to ensure timely funding and execution of projects.
Addressing the oil and gas sector, Mr Kupoluyi welcomed the ongoing reform efforts aimed at boosting crude oil production and improving regulatory processes.
He called for a fully digital regulatory ecosystem to enhance transparency, accelerate approvals and restore investor confidence.
The official added that high global oil prices presented an opportunity for Nigeria to strengthen its position as a major supplier, provided local production and refining capacities are improved.
The LCCI president, however, expressed concern over high import duties on paper, printing materials and related inputs, noting that the policy had increased production costs across several value chains.
“The situation is worsened by port delays, multiple regulatory checks and inconsistent tariff classifications.
The chamber also called for a review of import duties, integration of regulatory agencies into the National Single Window and measures to reduce cargo clearance timelines.
“A balanced policy mix of moderate tariffs, support for local production and stable macroeconomic conditions would enhance industrial growth and reduce business costs,” he said.
He also reiterated its commitment to continued engagement with government and stakeholders to promote policies that support a thriving business environment.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Thursday, April 29, with the Unlisted Security Index (NSI) returning above the 4,000-point mark after chalking up 6.55 points to settle at 4,005.78 points compared with the previous day’s 3,999.23 points.
During the trading session, the market capitalisation of the platform went up by N3.92 billion to close at N2.396 trillion, in contrast to the N2.392 trillion it ended on Wednesday.
The upliftment of the alternative stock market was influenced by the gains posted by four securities, which offset the losses printed by two securities.
According to data, Central Securities Clearing System (CSCS) Plc chalked up N4.03 to close at N76.02 per share versus the preceding session’s N71.99 per share, Food Concepts Plc appreciated by 24 Kobo to N2.67 per unit from N2.43 per unit, UBN Property Plc climbed 20 Kobo to trade at N2.23 per share versus N2.03 per share, and Geo-Fluids Plc improved by 9 Kobo to N3.00 per unit from N2.91 per unit.
On the flip side, MRS Oil Plc lost N17.65 to end at N178.10 per share compared with the previous price of N195.75 per share, and FrieslandCampina Wamco Nigeria Plc dipped by N9.76 to N90.24 per unit from N100.00 per unit.
The volume of securities traded during the trading day went up by 184.3 per cent to 877,682 units from 308,698 units, the value of securities jumped 5.7 per cent to N26.7 million from N25.2 million, and the number of deals soared by 100 per cent to 56 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value (year-to-date) with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 60.1 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed as the most active stock by volume (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
The market will be closed on Friday, May 1, for Workers’ Day celebration.
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