By Steve Agbota
The Chief Executive Officer of Wealthy Honey Investment Nigeria Limited, Dr Farinto Kayode Collins has called on the Central Bank of Nigeria (CBN) to have a predictive exchange rate workable for a period of minimum of two quarters to save the nation’s ports and importation from declining.
Farinto who made the call in a document titled; “
Re – CBN Policy Directive On Fluctuating Exchange Rate: It Is No Eureka,” and sent to Daily Sun on Monday, disclosed that the advice given to CBN to implement a predictive exchange rate on a quarterly basis has been jettisioned and was not considered in CBN’s policy statement released on Friday.
“For instance, we can adopt from January – June an exchange rate of N1000=$1 for Customs purposes/cargo clearance. This will stabilise our import and affirm confidence on our importation knowing fully well that, whatever the situation, the exchange adopted is N1000 to a dollar. If there is need for an increase, it will be obvious to all and there would have been sensitisation from the 2nd week of June, for any increase,” he said.
According to him, the CBN decision to advice that the Nigeria Customs Service and other related parties adopt the closing foreign exchange rate on the date of opening Form “M” for the importation of goods, as the foreign exchange rate to be used for import duty assessment is a step in the right direction, kudos to the new leadership of the CBN for the directive on Form “M” which should be the norm, not necessarily an intervention or solution but conforming to the international best practices.
“You recall that, in the last one decade we have been clamouring that the foreign exchange rate at the time of opening Form “M” ought to be sacrosanct for Import duty collection at the time of clearance. The CBN directive will help the Nigeria Customs Service from lazy benchmarking, which she has resorted to in the last few years and not a solution to the fluctuating exchange rate,” he added.
However, he commended the Federal Government, National Assembly, the Senate and House of Representatives for their efforts painstakingly in the last three weeks to address the fluctuating exchange rate as regards Customs clearance in the ports, which have shown that they are indeed the people representatives.
However, he hinted that CBN’s revised regulatory and supervisory guidelines for Bureau de Change operations in Nigeria, will only empower the cartel known to the Central Bank herself to continue to determine the future of the nation’s economy by way of hoarding and making the dollar available whenever they feel so.
He said if there must be sanity in the nation’s economy and also move Nigeria away from these group of Neo-colonialists, then the Central Bank should overhaul her entire system, particularly, the department saddle with this responsibility, adding that some of the CBN staff and senior officers are part of the cartel killing the Naira.
“Finally, the issue of NXP should be put in the front burner by the Central Bank. The National Assembly has endeavour recently to ensure that all our exports comply with having NXP but its implementation has been shaking and weak. 45 per cent of our exports are still conducted without NXP, how can Naira be strengthened? I urge the CBN to expressly look at the above issues mentioned.
“While advising the trading community to play the ball according to the rules of the game, let us remember that just last week, about five developed Countries slide into Economic Recession, Nigeria being an import dependent Country can only try to ensure that our purchasing power is maintained if not increased,” he explained.