Business

LCCI Wants CBN To Review Foreign Exchange Policy

Published

9 years ago

July 13, 2015

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.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

3 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

7 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu