Nigerian Exporters Urged to Adopt Self-Sustaining Forex Strategies to Reduce CBN Dependence
Nigerian exporters have been advised to reduce their reliance on the Central Bank of Nigeria (CBN) for foreign exchange by implementing sustainable forex strategies. Industry experts suggest that utilizing offshore accounts, diaspora bonds, and export-linked forex retention schemes can help exporters retain a portion of their foreign earnings for operational needs. This approach aims to ease pressure on the CBN and promote a more stable forex market, benefiting both the exporters and the country’s economy.
Dr. Bamidele Ayemibo, Lead Consultant at 3T Impex Consulting, emphasized the need to expand Nigeria’s exporter base, which is currently limited to around 1,200 exporters, a stark contrast to the thousands in other countries. He highlighted that many importers are already positioned to transition into export, and expanding the exporter base could significantly enhance Nigeria’s forex generation. Furthermore, he called for single-digit interest loans for exporters and stressed the importance of preparing a workforce that is export-ready to attract funding from non-traditional sources like venture capital.
Dr. Aisha Olatiwon from the Central Bank of Nigeria (CBN) also highlighted the importance of capacity building across value chains to boost the global competitiveness of Nigerian products. Ensuring Nigerian goods meet international standards is vital to growing exports and instilling confidence in local products. Additionally, Dr. Chinyere Tony-Eke of Globus Bank called for more structured collaboration between the government, private sector, and communities to drive export growth, particularly at the grassroots level.
The discussion also touched on the role of taxation in fostering export-driven growth. Ayo Subair, Executive Chairman of the Lagos Inland Revenue Service, underscored the importance of a transparent and efficient tax system to support innovation and competitiveness. Meanwhile, Otunba Francis Meshioye from the Manufacturers Association of Nigeria urged banks to reassess their support for the production sector, emphasizing the need to lower production costs, which are currently high due to energy and interest expenses. Overall, stakeholders agreed that prioritizing quality, affordability, and supportive policies is key to growing exports and reducing the nation’s forex dependence.
Source: Tribune