By Naomi Uzor

KADUNA — The Kaduna Chamber of Commerce, Industry, Mines and Agriculture, KADCCIMA, yesterday, said investors in various sectors of the economy were weighing the negative impact of the scarcity of foreign exchange on their businesses, noting that within six months, members of the Organised Private Sector lost about N1.46 trillion.

This came on a day the Federal Government restated its commitment to stabilize the country’s currency against the dollar.

Also, the strident calls by the International Monetary Fund, IMF, and some foreign interest for Nigeria to devalue its currency and the artificial spike in forex rate created by bureau de change operators have been linked to a complex and integrated currency management approaches deployed by the Central Bank of Nigeria, CBN, to peg the naira at N200 to the dollar.

Disclosing information on the N1.46 trillion loss at the ongoing Kaduna International Trade Fair, the President of KADCCIMA, Dr. Abdul-Alimi Bello, said the loss was occasioned by stalled business activities due to inadequate supply of foreign exchange as a result of Federal Government’s policy on foreign exchange restriction.

“We are concerned about the inclusion of essential raw materials, which are not available locally and do not have local substitutes, in the list of items not valid for forex because of the dire consequences of factory closures and attendant unemployment that would result.

“Our view is that such items can be included only after allowing investors ample time to backward integrate and generate these items locally. To avoid the risk of industrial closures, we plead that policy should be revisited,” he said.

He appealed that patronage of Nigerian products by public and private sector operators should be vigorously encouraged.

“In order to effectively entrench this as a policy, we urge all tiers of government to strengthen and fully implement the procurement Act so as to make it a reality as well as ensure that the various arms and tiers of government, including MDAs and Nigerian Missions Abroad actively patronize made-in-Nigeria products in a sustainable manner in preference to imported substitutes.”

FG restates commitment to stabilize Naira

Meanwhile, the Federal Government has restated its commitment to stabilize the country’s currency against the dollar.

Speaking at the opening ceremony of the 37th Kaduna International Trade Fair, tagged “Promoting Solid Minerals Sector for Sustainable Economic Development in Nigeria,” Minister of State (Industry, Trade and Investment), Hajiya Aisha Abubakar, said government was committed to stabilizing the country’s currency against the dollar and that short term measures had been introduced by the monetary authority to prevent the free fall of the naira.

She noted that government remained committed and resolute in ensuring that on-going reform programmes, especially in the areas of trade, industry, power, agriculture and solid minerals sectors, resulted in a vibrant private sector participation and increase efficiency in the national economy.

“As we confront the challenges ahead, I urge the entire private sector operators in Nigeria and their foreign counterparts to positively reciprocate these gestures by investing in the identified growth and employment generating sectors of the economy,” she said.

On his part, Governor Nasir el-Rufai of Kaduna State called on all and sundry to support and partner with the present administration in promoting non-oil export opportunities for economic growth and development.

“It is when economic diversification is encouraged and supported that we will be able to provide critical infrastructure, employment, wealth creation etc,” he said.

Cbn targets N200/$ parallel market rate

Meantime, the strident calls by the IMF and some foreign interest for Nigeria to devalue its currency and the artificial spike in forex rate created by bureau de change operators appear to have been linked to a complex and integrated currency management approaches deployed by the Central Bank of Nigeria, CBN.

A top source in the apex bank said:  “The aim of CBN is to ensure that the divergence between the official and parallel rate does not exceed N3, so we are looking at a parallel market rate of N200/$ because the downward trend in the pressure on the naira will be sustained.

“The CBN has the capacity to sustain the downward pressure and will deploy further currency management initiatives, while capitalising on fiscal policies of the federal government to remain in support of non-devaluation of the naira.

“The current stand of the Federal Government on Nigeria’s legal tender is non-devaluation. It will be unwise for anybody to be hoarding dollars because we can assure you that naira appreciation is going to trend upwards going forward.”