The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has reiterated its stance that duties collected by the Nigeria Customs Service (NCS) should be charged in Naira rather than in foreign currency.
In response to the Central Bank of Nigeria’s (CBN) directive permitting the use of foreign currency collateral for Naira loans, NACCIMA President, Dele Oye, expressed uncertainty regarding the Fiscal Policy objectives underlying the recent directives by the CBN. Oye emphasized that while the monetary policy directives have had a calming effect on the markets, there remains a lack of complementary Fiscal policy direction.
Oye stated, “We are still unclear about the Fiscal Policy objectives being pursued through these monetary policy directives. This directive is one of many in the public domain, and our position is to treat them equally.”
Referring to a previous letter addressed to the Minister of Finance and Coordinating Minister of the Economy dated March 28, 2024, Oye highlighted the anticipation of a report from the Presidential Committee on Fiscal and Tax reform, which has yet to be presented to the organized private sector. He stressed the importance of timely release of the 2024 Fiscal Policy, as business and investment decisions are often influenced by both Fiscal and Monetary policy expectations.
Regarding recent monetary policy directives, Oye expressed concern that while they have stabilized the markets, there remains a lack of clarity on the accompanying Fiscal policy direction. He questioned the objective behind the 24.75 percent interest rates and urged for clarity on government debt policy, inflation rate targets, currency printing targets, and interest rate policies.
NACCIMA firmly advocated for all legitimate government transactions to be conducted in the sovereign currency of Nigeria. Oye emphasized the need for the Nigerian Customs Service to cease collecting duties using the United States Dollar rate, citing the detrimental impact of currency uncertainty on manufacturers and businesses.
In conclusion, NACCIMA urged the Ministry of Finance and Economic Coordination to expedite the release of the Presidential committee report, emphasizing the importance of clarity and consistency in both monetary and fiscal policy directives.
