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Forex Policy Hurting Non-oil Exports, Says LCCI

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  • Forex Policy Hurting Non-oil Exports

The Lagos Chamber of Commerce has said that the Federal Government’s foreign exchange policy is detrimental to non-oil exports and has led to sharp practices and corruption in the export documentation process.

The observation was contained in a statement signed by the Director-General, LCCI, Mr. Muda Yusuf, on Friday.

It stated that the chamber had received several complaints from exporters about the adverse effects of the current forex policy on the export business, adding, “The policy hurts and demotivates exporters as it denies them the natural advantage of increased profitability, which a weak currency offers.”

Noting that the major advantage of a weak currency was the incentive it would provide to exporters in the sense that the currency depreciation would make exports cheaper, create business and improve profitability for exporters, Yusuf pointed out that the forex policy had denied them that advantage by not allowing for unfettered access to export proceeds.

He said, “The banks are, by the current regulation, the custodians of the export proceeds, which they covert to local currency for exporters at the official rate. Given the free market premium of about 35 per cent, the policy represents a major disincentive to the export business. Yet, the export sector development is one of the major planks of the economic diversification programme of the present administration.

“This policy regime resulted in a decline in the official declaration of export proceeds. It has also led to sharp practices and corruption in export documentation processes.

“This does not augur well for the economy and is not consistent with the objectives of the Economic Recovery and Growth Plan. This is also a major shortcoming of the current forex policy of the Central Bank of Nigeria.”

The LCCI DG urged the CBN and the Economic Management Team to urgently review the policy and allow exporters free access to their export proceeds.

He added, “The banks should not impose conversion rates on them. Indeed, many Asian economies deliberately devalue their currencies so as to stimulate their export sectors. All forms of restrictions to forex inflows should be removed so that the supply side of the forex market can be positively impacted and the current pressure on the forex market reduced.

“This will complement the recent efforts of the CBN to ease the pressure on the forex market, strengthen the naira exchange rate, bolster foreign reserves and boost investors’ confidence.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State

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The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.

The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.

Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.

I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.

The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”

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Unilever Nigeria Appoints Mr Jaime Aguilera as a Non-Executive Director

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Unilever Nigeria Plc

Unilever Nigeria Plc announced it has appointed Mr. Jaime Aguilera as a Non-Executive Director of the company effective from January 2021.

The company stated in a statement filed with the Nigerian Stock Exchange.

Mr Jaime Aguilera worked with Coca-cola, Nestle and Procter & Gamble before joining Unilever as Executive Vice President Unilever Eastern Europe in September 2016.

Therefore, his experience spans from Europe, Americas and Asia.

His key expertise areas are “in Sales & Marketing and he has lead teams in Spain, Brazil, South Eastern Europe, Middle East, Mexico and Global teams.

“In 2009, he joined Unilever Spain as EVP & Chairman and then moved to his current role as Unilever Executive Vice President Africa, leading the Unilever business in Africa. Jaime is of Spanish origin and is an alumnus of the Universidad Pontificia de Comillas- ICADE. Jaime majored in Economic Sciences, Management & Business Administration.”

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MTN Nigeria, Gameloft Partner to Increase Access to Variety of Exciting Games

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MTN Nigeria announced it has partnered with Gameloft, a leader in the development and publishing of games, to increase access to a variety of fun and exciting games online.

The telecommunications giant in collaboration with its new partner, Gameloft announced the launch of MTN Gameworld, a new gaming platform for its subscribers.

According to MTN, the new platform will allow the Nigerian growing gaming community access to a lot of unique games online through an extensive premium catalogue from Gameloft and other renowned publishers.

Commenting on the partnership, Srinivas Rao, the Chief Digital Officer, MTN Nigeria, said, “We are constantly seeking to deliver innovative products that support the aspirations of our customers, whilst delivering superior user experience. This partnership allows us to provide our customers with access to a variety of exhilarating games from Gameloft and other leading publishers at an affordable rate.”

MTN Gameworld will allow subscribed customers access to a variety of games, which they can play at subsidised data rates through the MTN Gameworld app. Android, iOS and Windows phone users can subscribe via SMS, app, web, USSD menu (*447#), 131 USSD menu and any other MTN customer channel.

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