Experts seek more dialogue over CBN forex policy

CONCERNED that the economy is suffering from regulatory headwinds like the Central Bank of Nigeria (CBN) new forex policy, a cross-section of experts have called for a synergy of cooperation with other agencies of government to cushion the effects of such policies.

At a public forum in Lagos to debate the CBN forex policy jointly hosted by the Nigerian Economic Summit Group (NESG) and the Policy Development Facility, Phase II (PDF II), a UKaid programme, experts suggested ways out of the crisis.

In his welcome address, Laoye Jaiyeola, Chief Executive, NESG, said there was need for better stakeholder engagement to the fallout of the policy.

“This problem will continue to hurt us if we keep on delaying or deferring a dialogue on it,” Jaiyeola said.

Echoing similar sentiments, the CBN governor, Godwin Emefiele said the apex bank was not averse to dialogue as most of its policy initiatives usually benefitted from divergent views.

The CBN governor who was represented by Mr. Moses Tule, Director Monetary Policy Department, CBN, emphasised that the short and long-term effects of the forex policy was considered before the policy was rolled out.

According to the CBN boss, the economy of Nigeria desperately needs to be revamped, as such no efforts should be spared to achieve this aim.

In his remarks, Mr. Bismarck Rewane, who chaired one of the panel discussion, said: “The consequence of doing nothing is that the problem never goes away.”

Read also: Foreigners, BDCs abuse forex deals, says CBN

It may be that the CBN had suspended foreign currency funding for about 41 imported items which are considered a strain on Nigeria’s already dwindling foreign reserves in June 2015.

The policy which has been met by Nigerians with mixed feelings, affects various business sectors and SME products ranging from vegetable oil to palm kernel, wooden fabrics, even toothpicks and many other items.

While admitting Nigeria is in dire a crisis, Dr, Eniola Ajayi of Consumer Advocacy Foundation of Nigeria (CAFON), however argued that the CBN needs to sit down with other ministries and departmental agencies to determine what the economic policy for the country will be in the short term, medium term, and long term.

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