Victor EzejaThe Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has commended the clearing of a $7 billion foreign exchange backlog by the Central Bank of Nigeria (CBN).
The body however called on the government to take urgent steps to address the unmet forex requests by some members of organised private sector operators.
Join our WhatsApp ChannelThis was contained in a statement by the National President of NACCIMA, Dele Oye.
Ote, who hailed President Bola Ahmed Tinubu and the CBN Governor, Olayemi Cardoso for the move, disclosed that several NACCIMA member companies and other private sector operators have expressed concerns about the forex clearance not holistic.
Oye noted that many of NACCIMA’s members have reported that despite the CBN’s commitment to providing foreign exchange, their funds in Naira have been retained for extended periods, some for over a year, expressing regret that this had occurred without adequate communication from their respective banks or the CBN, leaving their business operations in a state of uncertainty.
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He recalled that in February, NACCIMA as part of the Organised Private Sector of Nigeria, sought the intervention of the Minister of Finance to address these issues, emphasizing the need for transparency and expedited resolution.
The NACCIMA boss further urged for a more comprehensive and transparent approach to resolving the remaining foreign exchange allocations.
The statement reads: “As the President of the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), I would like to express our organization’s appreciation for the Central Bank of Nigeria’s (CBN) announcement regarding the clearance of a $7 billion foreign exchange backlog. This is indeed a commendable milestone, and we recognize the efforts of President Tinubu and the current Central Bank Governor in this regard.
“However, it is imperative to address the concerns raised by several of our member companies and other private sector operators that challenge the completeness of this clearance. Many of our members have reported that despite the CBN’s commitment to provide foreign exchange, their funds in Naira have been retained for extended periods, some for over a year. This has occurred without adequate communication from their respective banks or the CBN, leaving their business operations in a state of uncertainty.
“In February, NACCIMA as part of the Organized Private Sector of Nigeria (OPSN) sought the intervention of the Honourable Minister of Finance to address these issues, emphasizing the need for transparency and expedited resolution. Additionally, NACCIMA, along with NASSI and NASME with other associations, raised these concerns with the Minister of Industry, Trade, and Investment during a courtesy visit that same month. The gravity of the situation was acknowledged by the National Assembly, which led to a summoning of the Honourable Minister of Industry, Trade, and Investment to discuss the matter further.”
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It further noted, “As part of the Hon Minister of Industry Trade and Investment preparation for the National Assembly Summons, a stakeholder meeting Comprising of NACCIMA, MAN, affected banks and customers was convened by the Honourable Minister of Industry Trade and Investment at the Bank of Industry in Lagos on the 21st of March, 2024.
“At the meeting, it was gathered that there has been a lack of formal communication from the CBN regarding the rejection of foreign exchange bids. Furthermore, it was revealed that Deloitte, the consulting firm engaged by the CBN for verification purposes, had not directly engaged with the affected banks or their customers for clarification on any contentious transactions.
“The consensus from the meeting was that direct engagement with the CBN is essential. The Honourable Minister urged all parties to pursue dialogue and cautioned against actions like litigation that could hinder such discussions.”
Oye stated, “In light of these developments, NACCIMA appeals to the CBN to collaborate closely with the Honourable Minister of Industry, Trade, and Investment, as well as the banking sector and their clientele, to resolve all outstanding issues pertaining to legitimate letters of credit for which Naira has already been collected (for a considerable time) with a promise of fulfillment.
“It is important to underscore that the continuity of government obligations transcends the tenure of individual officeholders; hence, legitimate transactions initiated under previous administrations must be honored with the same level of commitment.”
The NACCIMA boss added, “While we acknowledge the strides made in addressing trade claims, we urge for a more comprehensive and transparent approach to resolving the remaining foreign exchange allocations. This will not only support the integrity of banking processes but also bolster the confidence of the private sector in Nigeria’s financial institutions and the broader economic policies of the government.”
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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