The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) is advocating for a change in the currency used for charges collected by the Nigeria Customs Service (NCS), preferring the levying to be done in Naira rather than foreign currency.
This call comes in response to the recent directive from the Central Bank of Nigeria (CBN) regarding the use of foreign currency collateral for Naira loans.
Dele Oye, the president of NACCIMA, expressed uncertainty about the fiscal policy objectives behind the CBN’s directives. While acknowledging that the monetary policy directives have brought about market stability, Oye emphasized the necessity of a corresponding fiscal policy direction.
In a letter dated March 28, 2024, addressed to the Minister of Finance and Coordinating Minister of the Economy, NACCIMA highlighted the importance of timely fiscal policy releases, stressing that business and investment decisions rely heavily on both fiscal and monetary policy expectations.
Oye emphasized the need for clarity on various fiscal policy aspects such as inflation rate targets, government debt policy, currency printing targets, and interest rate policy, stating that responding to piecemeal monetary policy bulletins without regulatory guidance is challenging.
Regarding the recent monetary policy directives, Oye pointed out that while they have stabilized the markets, there is still a lack of complementary fiscal policy direction. He questioned the effectiveness of high-interest rates, noting that they may not necessarily stimulate local investment in sectors like agriculture and manufacturing.
NACCIMA urged the Nigerian Customs Service to cease collecting duties using the United States Dollar rate and insisted that all government transactions should be conducted in the sovereign currency of Nigeria. The association called upon the Ministry of Finance and Economic Coordination to expedite the release of the Presidential committee report to address these concerns promptly.