We, at the APGA THINK-TANK, NIGERIA welcome the new Forex regime introduced by the Central Bank of Nigeria [CBN].
Acknowledging that the Nigerian economy is import dependent is a truism, which may help organize and focus our economy in the long run.
A sudden reversion to local sufficiency methods without the provision of adequate transition mechanisms though well-intentioned, is bound to fail in the long run because of the resentment and apprehension following such unilateral act and policy.
Nigeria is past the restricted economy. Way past.
An understanding of the broad-based nature of the Nigerian economy bodes well for Nigeria in the long run.
We particularly applaud the Federal Government on the following points the CBN outlined below:
Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and
Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads;
Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market.
We laud above attempts by the management of the CBN to ease currency restrictions within and outside the country, allowing interested parties to bring in, and take out as the case may be goods and services into, and outside the country secondary to a fluid foreign exchange system.
At the APGA THINK-TANK, NIGERIA, Our only hope is that more is brought into the country boosting our country’s earnings, than is taken out.
Such influx eases economic and social tension allowing our restive trading systems, including youths, legal alternatives to demonstrate their ingenuity at creating wealth, or earning available income following their display, also investing appropriately and boosting the local economy.
At the APGA THINK-TANK, NIGERIA we would note that difficulty accessing funds have resulted in International Airlines as the United and Iberia to pull out from Nigeria.
And many more bracing. We have to stop the blood-letting.
Such is not good for economy and our international diplomacy in the long run.
We urge the Government to maintain the Goodwill past governments have worked hard to secure for our country.
For example, Nigeria earns much diplomatic points when its local passengers are fairly acknowledged internationally by foreign airline staff.
Believe it or not, a good whisper by the airline staff in certain circles boosts positive perception and intention for a country by others. Just think of who’s flying.
If you want to know what your country is worth on the International scale, the attitude of the airline staff is a good measure.
We applaud the Federal Government for easing the foreign exchange restriction, also allowing local holders of foreign exchange to make same available to the market, at the market exchange rate.
Nigerians are reputed to hold $20 billion dollars in dollar deposits in Nigeria alone.
Such equitable trade allows a balance in the movement of personnel, trade, services within the economy, gingering the influx of other trades secondary to ease in exchanging both local and Foreign currency.
The regime also allows the Diaspora to meaningfully continue their transfer of foreign currency into the Local economy.
Diasporans are reputed to transfer $12 billion dollars into the economy yearly.
In the long run, the world market cannot ignore the Nigerian market.
Government must also allow individuals to legally carry a given sum past our international borders to conduct their personal business.
Currency declaration at the Customs and excise at our borders cannot become a frightening nightmare, as avarice instead meaningful assistance rules.
Countries as The United States caps such sum on a person to 10,000 dollars. And that is Legal for all and sundry.
Nigerians may not resort to swallowing hard currency. No!
Government must provide friendly border personnel who allow fellow Nigerians to carry on their business. Individuals may not be subjected to unnecessary harassment because they are carrying their hard earned money to conclude transactions.
The Nigerian Customs cannot become unnecessarily busy.
A confluence of local taste, production and demand, interexchange and comparison with foreign market products will boost the Nigerian economy to heights unrivalled, and create the Nigerianness we know.
All must acknowledge that Nigerians have foreign taste. We must find ways of dealing with that acquisition.
Blanket bans will not curb the appetite. Meaningful competition may allow all to cut their coat according to their size.
Finally, we applaud the attempt by the Central Bank of Nigeria to supervise the market, enabling all participate.
At the APGA THINK-TANK, NIGERIA, it is our opinion that a free enterprise system is the best for Nigeria.
If we must open our local grazing routes, we must also open up our international trade routes and systems.