Forex: Organised private sector seek policy review

The Organised Private Sector has sought a review to the list of 41 items banned by the Central Bank of Nigeria (CBN) from accessing Forex in the interbank market in order to remove raw materials components that cannot be sourced locally.

The OPS also called on government to ensure that the 60% concessionary Forex allocation to the manufacturing sector for raw materials and machinery importation is strictly implemented.

It made the call yesterday in its presentation to Acting President Yemi Osinbajo during the Second Presidential Business Forum held at the State House, Abuja.

The president of the Manufacturers Association of Nigeria (MAN), Frank UdenbaJacobs, who made the presentation, said access to Forex had been a major challenge to businesses in the last two years.

“We are aware, and commend the government on the various steps taken to resolve this issue including the standing directive by the CBN to banks to channel minimum of 60% of available Forex to manufacturers.

“The challenge this policy is currently facing is that there is inadequate monitoring mechanism. The CBN list of 41 items is made up of 440 tariff lines. 31 out of the CBN list of items not valid for Forex contain 393 tariff lines which are finished products.

“Those finished products may be retained on the list of items excluded from the official foreign exchange market. The remaining 10 items of 47 tariff lines are essential industrial raw materials that are either not readily available locally or there is a yawning gap between local production and national demand”, he said.

The OPS also appealed to the government to prevail on the Federal Inland Revenue to follow laid down procedure by tax laws for recovering taxes owed by companies rather than invade companies.