Business

Forex Crisis Putting Investment, Jobs At Risk – LCCI

Published

5 years ago

April 16, 2021

The difficulties faced by many investors in Nigeria in accessing foreign exchange for importation of raw materials, equipment and some critical inputs for production and processing is putting investments and jobs at risk, the Lagos Chamber of Commerce and Industry (LC-CI) has said.
The President, LCCI, Mrs Toki Mabogunje, said on Wednesday that the chamber was concerned about the divergent positions of both the fiscal and monetary authorities regarding the country’s foreign exchange framework.
“Lack of cohesion among policymakers sends a negative signal to the investment community, worsens uncertainty, and further dampens investor confidence,” she said on Wednesday at the chamber’s quarterly press conference on the state of the economy.
According to her, it is important for the fiscal authorities, the Central Bank of Nigeria and the Economic Advisory Council to be on the same page as far as the country’s forex policy framework is concerned.
Mabogunje said the country’s forex policy framework needed to be reviewed to expand the scope of market mechanism in the determination of exchange rate.
“It is critically important for policymakers to harmonise the multiple exchange rates into a single market-reflective rate, which is imperative in strengthening investor confidence and engendering macroeconomic stability,” she said.
She said the unification of exchange rates would complement recent efforts by the CBN geared at enhancing liquidity at the supply segment of the foreign exchange market.
According to her, ensuring clarity on the country’s foreign exchange policy direction among participants in the investment environment is even more imperative in attracting private investments into the economy.
Mabogunje said, “Meanwhile, many investors in the economy, including those in the real sector, are lamenting the difficulties in accessing foreign exchange for importation of raw materials, equipment and some critical inputs for production and processing. This is in spite of the notable recovery in crude oil prices.
“This situation is taking a huge toll on capacity utilisation, business turnover, sales, and profitability. Sustainability of some of these investments are currently at risk with dire implications for retention of jobs.”
She said all these underscored the need to review the current foreign exchange management model.
The LCCI acknowledged the efforts of the CBN towards boosting dollar inflows into the economy through the Naira for Dollar Scheme.
“The chamber wants this privilege to be extended to other sources of foreign inflows, especially export proceeds,” Mabogunje said.
According to her, the major drivers of core inflation in recent months include lingering forex liquidity concerns, evidenced by the widening disparity between parallel market rate and Nigerian Autonomous Foreign Exchange Rate; pass-through effect of the exchange rate depreciation on imported raw materials and finished items; elevated energy prices; upward adjustment of electricity tariff, and cargo clearing challenges at the ports.

Mabogunje said, “The continued uptick in inflation has profound implications for all stakeholders in the economy including households, businesses, and investors.
“It weakens purchasing power and consequently worsens the poverty conditions; it escalates operating and production costs and erodes profit margins, and ultimately undermines investors’ confidence.
“Galloping inflation complicates the pursuance of the price stabilisation mandate of the CBN even at a time the bank is deepening its intervention efforts to boost credit flows to the real economy.”
She said although the country had exited recession, growth remained fragile, with several challenges including rising consumer prices, weak employment level, depressed purchasing power, weak investor confidence, persisting external vulnerabilities and security concerns.

Business

Insecurity, Poor Power Supply Hamper Business Activities – Survey

Published

3 days ago

November 18, 2025

The Tide

Business in Nigeria remain under pressure as a result of insecurity and erratic power supply which continue to stifle productivity in the country.
This is even as new data from the Central Bank of Nigeria (CBN) indicate sustained improvements in economic activity.
This was the response of businesses in the CBN’s October 2025 Business Expectations Survey (BES) and the Purchasing Managers’ Index (PMI) report.
While the PMI showed that economic activity expanded for the 11th consecutive month, the BES revealed that businesses are still grappling with crippling operational constraints that threaten to reverse recent macroeconomic gains.
According to the BES conducted between October 6 and 10, firms identified insecurity (71.8 points) as the most critical challenge affecting operations nationwide. This was closely followed by insufficient power supply (70.9 points), multiple taxation (70.2 points), high interest rates (68.4 points) and financial constraints (65.6 points). Analysts say these constraints underscore the depth of structural weaknesses confronting Nigeria’s private sector.
Despite these challenges, the survey reported a rise in business optimism. The Business Confidence Index increased to 38.5 points in October from 31.5 in September. Firms also projected confidence levels to reach 45.6 points in November, with expectations of further improvement over the next three to six months.
However, sector analysts warn that the optimism remains fragile due to the lack of significant improvements in the operating environment.
The BES further showed a modest rise in capacity utilisation from 60.4% in September to 62.0% in October, suggesting that businesses have yet to deploy their productive capacity amid ongoing disruptions fully.
In contrast to the structural constraints highlighted in the BES, the PMI report indicated strengthening economic momentum. The composite PMI rose to 55.4 points, reflecting expansion across major components such as output, new orders, employment, inventories, and supplier delivery times.
A sectoral breakdown showed that the agriculture sector recorded the most substantial improvement, with its PMI climbing to 57.5 points, marking 15 consecutive months of expansion. The services sector also expanded for the ninth straight month to 55.6 points, while the industry sector rose to 54.2 points, the highest in more than a year.
The CBN attributed the positive trends to improvements in the broader macroeconomic landscape, including declining inflation, which eased from 24.5% in January to 18.0% in September, and the year-to-date appreciation of the naira across both official and parallel markets.
The BES showed that the North-East posted the highest business confidence at 56.1 points, while the South-South recorded the lowest at 23.3 points, a trend linked to declining activity in oil-producing communities.

Business

FG Set To Launch Free National Financial Literacy Training For 100,000 Youths,

Published

3 days ago

November 18, 2025

The Tide

The Federal Government will on Tuesday, November 25, officially unveil a strategic programme for a free nationwide training of over 100,000 youth on financial literacy.
The Federal Ministry of Youth Development will launch the programme in collaboration with Investonaire Academy. Tagged, the “Financial Literacy, Investment, and Wealth Creation programme.”
The flagship initiative is designed to equip young Nigerians with essential financial skills, investment knowledge, and digital competencies for sustainable wealth creation.
A statement signed by the Director, Press and Public Relations, Federal Ministry of Youth Development, Omolara Esan, and made available to newsmen, confirmed that the launch of the programme, to be held in Abuja, would promote nationwide participation.
It added that the launch would bring together senior government officials, development partners, private sector leaders, and youth representatives to explore innovative approaches for improving financial capability and strengthening the economic prospects of young Nigerians.
Minister of Youth Development, Comrade Ayodele Olawande, would serve as the chief host, while the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, would grace the event as the Special Guest of Honour.
Also expected are representatives of key government institutions and private sector partners, including Dr Enefola Odiba, International Programme Director, Investonaire Academy, and Mr. Bashir Nurmohamed, Chief Executive Officer, Hantec Markets
The statement reads, “A major highlight of the event will be the unveiling of a free national financial literacy training programme targeting over 100,000 youths annually. The programme will be powered by a state-of-the-art Learning Management System (LMS) designed to enhance financial intelligence, investment capacity, and entrepreneurial readiness among Nigerian youth.

Lady Godknows Ogbulu

Business

‘Entrepreneurs, Not Foreign Aid Drive Nigeria’s Growth’

Published

3 days ago

November 18, 2025

The Tide

The chairman of the United Bank for Africa, Tony Elumelu, says Nigeria’s economic transformation will be driven by entrepreneurs, not government handouts or foreign assistance.
Elumelu, who spoke at the Grow Nigeria Conference 2.0 and themed ‘Empowering Nigeria’s Entrepreneurs: Building Institutions That Last’, in Lagos, Monday, said the nation’s future is already being shaped by business owners who refuse to settle for mediocrity.
Elumelu, who is also the founder of the Tony Elumelu Foundation, described Nigeria as an entrepreneurial nation but stressed the need to build institutions that can stand the test of time.
“Starting businesses is good. Sustaining them is critical, and that’s how we transform this economy,” he said.
He noted that many promising ideas fail because the systems and support structures necessary for growth are absent.
According to him, Nigeria’s renewal must come from the private sector, backed by strong governance frameworks and proper succession planning.
“Nigeria will not be built by government handouts or foreign aid. Government’s role is critical, but Nigeria will be built by entrepreneurs — by you, building businesses that create jobs, hope, and prosperity from the ground up,” he said.
Elumelu, however, emphasized that entrepreneurs cannot succeed in isolation.
“You need frameworks — clear governance, succession planning, and relentless focus on value. We need the right environment. We need a Nigeria where policies are predictable, infrastructure works, and financing is truly accessible,” he said.
He called for stronger alignment between public and private sector efforts, warning that progress would remain limited if institutions work independently rather than collaboratively.
Elumelu commended the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, for ongoing reforms within the agency.
He further lauded President Bola Tinubu for appointing young Nigerians to lead key institutions and for prioritizing youth entrepreneurship.
“Let us cut the bureaucracy. Make finance and opportunity real, not theoretical. Let’s help Nigeria’s entrepreneurs move from surviving to winning.
“Every job we create fights insecurity. Every thriving business increases our tax base and accelerates prosperity for all,” Elumelu added.