NACCIMA Challenges Forex Collateral Requirement for Naira Loans

Dele Oye, President of the Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has reiterated the organization’s stance that duties collected by the Nigeria Customs Service (NCS) should be denominated in Naira rather than in foreign currency.

Responding to the Central Bank of Nigeria’s (CBN) directive allowing foreign currency collateral for Naira loans, Oye expressed NACCIMA’s continued lack of clarity regarding the Fiscal Policy objectives set by the CBN. He emphasized that while monetary policy directives have had a stabilizing effect on the markets, the absence of a complementary fiscal policy direction remains a concern.

Oye highlighted the importance of fiscal and monetary policy expectations in shaping business and investment decisions. He urged for the timely release of the 2024 Fiscal Policy, emphasizing that piecemeal announcements on monetary policy lack effectiveness without comprehensive regulatory guidance on critical factors such as inflation rate targets, government debt policy, currency printing targets, or interest rate policies.

While acknowledging that recent monetary policy measures have stabilized markets, Oye stressed the need for a coherent fiscal policy direction. He questioned the effectiveness of policies like the 24.75% interest rates in fostering local investment in sectors like agriculture and manufacturing, advocating instead for policies aligned with broader economic objectives.

In conclusion, NACCIMA insists that all legitimate government transactions should be conducted in the sovereign currency of Nigeria, underlining the importance of maintaining financial sovereignty.


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