The Central Bank of Nigeria (CBN) has given conglomerates the green light to source for alternative sources of foreign exchange.
Addressing Chief Executive Officers (CEOs) of conglomerates in Nigeria, Mr. Emefiele said the CBN “was not opposed to the conglomerates seeking alternative but legitimate sources of foreign exchange to boost their businesses”.
He assured them that “the CBN would not hinder the companies from repatriating their dividends”.
Emefiele gave these assurances during a virtual meeting with CEOs of conglomerates in Nigeria.
The Governor, however, warned that the CBN will not support the importation of items that can be produced in Nigeria.
The reason for this decision, he said, was “because the bank can not spend its foreign exchange reserves on what would not boost the economy and generate jobs for Nigerians”.
Emefiele pledged the CBN’s willingness “to provide foreign exchange to companies that required such for raw materials and machinery that could not be obtained in Nigeria”.
On the unstable price of crude oil, the Governor, expressed confidence that the price of crude will not remain at low levels for a long period.
CBN says Economic growth persists but at slower pace
He emphasised that the low crude oil prices were surmountable, declaring that Nigeria’s foreign reserves of about $37billion remained robust to support the economy.
With the African Continental Free Trade Area (AfCTFA) now billed to commence in January 2021, Mr. Emefiele said Nigeria has provided the conglomerates with immense opportunities to produce their items and make huge profits through the Nigerian market, which he said was large enough to support their businesses.
Stressing further on the need to prioritise the Nigerian market, the CBN Governor assured the companies that the CBN “will collaborate with the relevant government agencies to help nip smuggling in the bud, while also promising to protect their businesses to ensure they succeed in Nigeria.”
Similarly, he assured the CEOs that the CBN will collaborate with other fiscal authorities to improve on their ease of doing business in Nigeria, with a view to simplifying their import and export processes.