Business
LCCI Wants CBN To Review Foreign Exchange Policy
L-R: Jonah Iboma, Manager Corporate Communication PHED, Chief Regulatory Officer, PHED, Nancy Abdala and Head Customer Services, Godwin Orurwiroro during a public consultation on traffic review in Port Harcourt, last Friday. Photo: Nwiveh Donatus Ken
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to review its foreign exchange policy for imported goods.
The LCCI made the call in a statement signed by its Director-General, Mr Muda Yusuf, which was made available to newsmen in Lagos, yesterday.
The chamber disapproved of the apex bank’s policy which restricted 41 imported goods from accessing foreign exchange from the bank.
It said that the policy would serve as a disincentive to the Nigerian manufacturing sector and the economy.
The statement said that the restricted items included critical elements of the manufacturing process of many firms, across sectors in the country.
“The policy means that manufacturers who require any of the 41 restricted items as inputs and raw materials for their production may have to simply shut their operations once their existing stock is exhausted.
“The LCCI understands the CBN’s constraints and circumstances, as it drew up this policy.
“It, however, appears as if the formulation of the policy has suffered from the CBN’s limited understanding of the manufacturing process of many of the sectors affected by this policy.’’
The CBN on June 23 said that it was imperative to exclude importers of some goods from accessing foreign exchange.
It added that the directive was aimed at encouraging local production of the items.
The chamber, however, noted that the policy was ambiguous as the restricted items were not well-defined and specific.
It stated that the ambiguity had plunged both manufacturers and banks into confusion regarding the intent of the CBN.
It, therefore, urged the apex bank to amend the policy with full product definition, specification of all restricted items, including their HS Codes and excluding any items which are non-substitutable industrial raw materials from the list.
The chamber, therefore, called for appropriate time frames for items which required some interval before local substitutes can be created for imported raw materials.
It reminded the CBN and the Federal Government that manufacturers had yet to recover from the losses they suffered due to the recent currency devaluation.
“Compounding recent devaluation losses with higher costs and the complete inability to source critical raw materials may push many firms over the precipice.
“This may result in business closures, job losses, declined manufacturing sector production and greater social tension.’’
It urged the CBN and the Federal Government to consider palliatives and incentives to prevent such a scenario.
The chamber stated that the fundamental forces the apex bank was struggling against were economic and fiscal policy dependence.
It said the Bank continues to exert monetary policy tools almost to a point in which economic harm may result.
The chamber, therefore, listed the fundamental factors as: diversification of the economy in terms of exports and government revenue, issues around the deregulation of the downstream oil sector and the fiscal regimes of the upstream oil sector.
Others are the power sector’s efficiency, creating alternative economies in solid minerals, agriculture, manufacturing and a robust export-driven economy.
“These matters cannot be resolved through exclusive deployment of monetary policy tools.’’
The chamber added that harmonisation of CBN policies with other government agencies was critical, to avoid cross purposes and for economic development.
It, therefore, urged the apex bank to avoid policies that may produce oligopolistic and monopolistic outcomes, which the chamber noted, were at variance with its mandate of building a sound economy.
It recalled that on July 9, LCCI organised a stakeholders’ forum on the policy, which was attended by representatives of the CBN and the organised private sector, including the manufacturing sector.
The chamber said that the outcome of the forum formed the basis of the forum’s communique for government’s immediate action.
It, therefore, urged for increased engagement and consultation between the CBN and the private sector, for adequate understanding of the impact of its policies on the manufacturing sector.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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