Aduragbemi Omiyale
**As Osinbajo Wants Fewer Regulatory Requirements
By Aduragbemi Omiyale
Some exporters in Nigeria have complained bitterly over the imposition of the Nigerian Autonomous Foreign Exchange (NAFEX) rate on export proceeds.
The concerns of the exporters were contained in a report submitted on Tuesday by the ad-hoc committee on Agro-Export set up by the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Yemi Osinbajo.
They alleged that the imposition of NAFEX rate on export proceeds limits their access to foreign exchange (FX), making it nearly impossible for them to utilise their export proceeds.
For instance, the exporters are unable to use the dollars domiciled in their accounts for freight payment for export as a result of the policy and they want this addressed.
The Central Bank of Nigeria (CBN) operates two exchange rate regimes; the Investors and Exporters (I&E) window and the interbank segment and the rates as of yesterday were N415.75/$1 and N416.36/$1 respectively. There is a third window, which is the unofficial black market, where the Naira trades above N560/$1.
Some forex users, including importers of some items, are not qualified to access FX from the banks. They use the black market and some observers believe as long as the country fails to operate a single exchange rate regime, there would always be a crisis.
At the gathering yesterday, Mr Osinbajo shared the sentiments of the exporters as contained in the report, noting that efforts must be made to make businesses and investors thrive in the country.
He lamented the cumbersome agro-export processes in Nigeria, stressing that investments are drying up as a result of too many regulatory requirements. He noted that there is a need for a complete reorientation of the exercise of regulatory authority.
“If people who want to export cannot export due to what seems like too many regulations.
“There are too many regulatory requirements. Too many regulations kill output. We have to take a second look at how we regulate. Over-regulation is killing businesses. It kills investments. An agric exporter can’t export perishable produce after months,” he lamented.
The Vice President noted that there are also processes of product certifications that take so long on the regulatory queues in Nigeria, while businesses from outside the country with swift regulatory regimes will then bring the same products into the country to sell.
“Because our certification processes are slow, others from outside nations (from neighbouring countries based on an ECOWAS agreement) with faster processes can bring their products and sell here, while our own businesses are still on the queues of regulatory agencies,” the VP observed.
In the report submitted by the ad-hoc committee, it was revealed that the exportation flow as regards payment and verification was extremely cumbersome.
The council, therefore, resolved to approve an Agro-Export Action Plan that will remedy the situation and also approved a 60-day National Action Plan 7.0, which is expected to commence on February 7, 2022.
