The President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye Esq., has emphasized the need for all government transactions, including customs duties, to be conducted exclusively in the Nigerian Naira. He called on the Nigeria Customs Service (NCS) to cease collecting duties based on the U.S. Dollar exchange rate, citing the adverse effects this practice has on local businesses and manufacturers.
Oye made these remarks in reaction to the Central Bank of Nigeria (CBN)‘s recent directive prohibiting the use of foreign currency collateral for securing Naira loans. While acknowledging the monetary policy’s impact in stabilizing markets, Oye expressed concerns about the absence of complementary fiscal policy measures, which he described as essential for sustainable economic growth.
“We are still uncertain about the fiscal objectives being pursued through these monetary policies,” Oye stated. “This directive is one of many recent developments in the public domain. Our stance is to approach them collectively and not in isolation.”
Oye highlighted NACCIMA’s ongoing efforts to engage with the federal government on these issues. He referenced a letter dated March 28, 2024, addressed to the Minister of Finance and Coordinating Minister of the Economy, which stressed the urgency of presenting the Presidential Committee on Fiscal and Tax Reform report to the organized private sector. Despite assurances that the report would be ready by April 2024, it remains unpublished, leaving businesses and investors without clear guidance.
“Most investment and business decisions rely heavily on fiscal and monetary policy expectations,” Oye continued. “We strongly urge the timely release of the 2024 fiscal policy framework. The current practice of addressing monetary policy issues piecemeal, without aligning them with fiscal strategies, creates unnecessary confusion and uncertainty.”
He further criticized the high-interest rates, currently at 24.75%, as a deterrent to local investment in critical sectors like agriculture and manufacturing. While recognizing that the policy has helped manage liquidity, he questioned its broader objectives.
“We appeal for clarity. What is the end goal of these policies? We urge the Ministry of Finance and Economic Coordination to expedite the release of the fiscal policy framework to ensure consistency and confidence in the economic environment,” he said.
Oye reiterated NACCIMA’s position that all legitimate government transactions must be conducted in Naira, emphasizing that customs duties should not be an exception. “The current practice of using the U.S. Dollar for customs transactions has created severe uncertainty, particularly for manufacturers and businesses. This must be addressed immediately,” he insisted.
The call for greater fiscal policy transparency reflects growing frustration among private sector stakeholders over the lack of cohesive economic strategies. NACCIMA’s position underscores the urgent need for the federal government to align monetary policies with fiscal measures to foster a stable and predictable business environment.
By addressing these issues, NACCIMA aims to protect the interests of local businesses and support long-term economic growth in Nigeria. The association continues to advocate for policies that promote fair practices, reduce uncertainty, and enhance the competitiveness of the Nigerian economy.
