Posted by Samuel on Wed 10th Apr, 2024 - tori.ng
Dele Oye, NACCIMA president spoke on Tuesday while responding to the Central Bank of Nigeria’s (CBN) directive on the use of foreign currency collateral for naira loans.
The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has advocated for duties collected by the Nigeria Customs Service (NCS) to be charged in naira instead of dollars.
Dele Oye, NACCIMA president spoke on Tuesday while responding to the Central Bank of Nigeria’s (CBN) directive on the use of foreign currency collateral for naira loans.
On April 8, the CBN directed all banks to stop the use of foreign currency-denominated collaterals for naira loans.
The regulator directed banks to trim all existing loans with foreign currency collaterals to 90 days or attract a 150 percent capital adequacy ratio computation as part of the bank’s risk.
Reacting to this, Oye said the association is still unclear about the fiscal policy objectives of the recent directives by the CBN.
Oye said the monetary policy directives have resulted in calming the markets, but the activities continue to be guided without a complementary fiscal policy direction.
“We are still unclear about the Fiscal Policy objectives being pursued through these monetary policy directives,” he said.
‘This directive is one of many in the public domain, and our position is to treat them equally.
“In our 28th March 2024 letter with ref No NCC/NP/ 22/23/1267 to the Honourable Minister of Finance and Coordinating Minister of the Economy, we drew the attention of the Honorable Minister to the vacuum created by the anticipated report of the Presidential Committee on Fiscal and Tax reform, which is yet to be presented to the organized private sector in April 2024 (the 4th month of the year).
“The Nigerian Customs Service must collect the national currency of Nigeria. NCS must stop collecting duties using the United States Dollar rate.
“The uncertainty has been devastating for many manufacturers and businesses.
“We respectfully urge the esteemed office of the ministry of finance and economic coordination to expedite the release of the Presidential committee report.”
Oye said the association is determined to draw attention to the issues bordering on lack of policy direction for several reasons.
He also expressed regret that the recent hike in the monetary policy rate would dampen investments in the agricultural and manufacturing sectors.
Oye, therefore, appealed that all bonafide government transactions must be in the sovereign currency of Nigeria.