As part of its recommendations to cushion the impact of the recent tariff hike on Nigerian exports, the Association of Bureau de Change Operators of Nigeria (ABCON) has called on the Federal Government to strengthen economic partnerships with countries such as India, China and other African markets.
The President of ABCON, Dr. Aminu Gwadabe, said Nigeria must diversify its sources of foreign exchange to mitigate the risk associated with recent tariffs.
Speaking on the country’s reliance on petrol-dollar earnings structure, he urged the government to broaden its export base beyond oil by exploring trade partnerships with key economies in Asia and Africa.
“Nigeria, being a mono-cultural economy that depends heavily on petro-dollar receipts, should deepen economic ties with India, China, and African markets in the export of its primary commodities,” Dr. Gwadabe stated.
He further recommended that the Central Bank of Nigeria direct commercial banks to channel interbank proceeds to Bureau de Change operators to reduce volatility in the foreign exchange market.
Dr. Gwadabe stressed the importance of supporting local production of export commodities to reduce dependence on crude oil and improve economic resilience.
While commending the CBN’s swift response to the U.S. tariff hike, he warned that the increased duties could render Nigerian goods less competitive in the U.S market.
The recent tariff adjustment has also affected the naira and contributed to a slight depreciation in the official foreign exchange market.
The ABCON president urged the CBN to inject liquidity into both the interbank and retail FX markets to support small and medium-sized enterprises and meet invisible transaction demands.
He also commended the apex bank’s interventions in the forex market, noting that such measures have helped to contain inflation and reduce volatility amid ongoing economic reforms.
Following the implementation of the tariff, the naira closed significantly weaker on Monday at N1,629.00/$1 in the official foreign exchange window.
