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OPS urges CBN to postpone forex implementation

By Naomi Uzor

LAGOS—The Organised Private Sector, OPS, yesterday, urged the Central Bank of Nigeria, CBN, to postpone the implementation of the Foreign Exchange Policies to allow clearance of backlog, or orders already placed to be settled.

Speaking at the 2015 Annual Seminar of the Industrial Group of the Lagos Chamber of Commerce, LCCI, with the theme “Survival Strategies Under The CBN Forex Policies”,  Partner, KPMG Professional Services, Mr. Ayo Luqman Salami, said, in the short term, there is need for the OPS to engage with the CBN with a view to postponing the implementation, to allow clearance of backlog, or orders already placed, collaborate with local producers to exhaust all local supply channels, engage with the CBN for exemptions to finance import of inputs with no local capacity or where local capacity is inadequate e.g., palm produce, rice, etc.) and inquire about other potential sources of FX from bankers.

On the medium term on how best to survive the CBN Forex policies, he said, there is need to provide periodic updates on shortfalls from local supply channels compared to demand, and demonstrate the need for continued importation until local capacity is adequate.

“Explore local production of the inputs via backward integration strategies (as additional business, or in JV with local producers) and or encourage foreign suppliers to set up factories in Nigeria. Collaborate with the local producers for improved local input” he said.

On long term basis, Salami suggested that there is need to procure capital items and import as “foreign loan” to facilitate the processing of COLCI, and thus repayment/payment of principal and interest element.


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