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  • How to tackle naira depreciation, inflation surge, by NACCIMA

    How to tackle naira depreciation, inflation surge, by NACCIMA

    • Seeks fiscal policy stabilisation, finance sector reform, others

    The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has proffered short, medium and long-term strategies to address naira depreciation, inflation surge and ensure economic prosperity for the nation as well as the people.

    In separate letters to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, the NACCIMA boss urged the apex bank to immediately announce the pegging of the naira between 750 to 850 naira to the USD effective from March 21, 2024, and enforce stricter regulations on currency transactions.

    In the letter to Cardoso entitled: ‘NACCIMA’s Suggestions for Addressing the Continuous Depreciation of our Currency,” Oye outlined a multifaceted plan, segmented into short, medium, and long-term measures to address currency devaluation and inflation in the country.

     “This letter embodies the thoughts of the organised private sector on how we can tackle the lingering challenge of the naira’s depreciation.

    “It is our hope that you and your team can consider the ideas espoused here, and by implementing them, achieve significant progress in stemming the ugly tide of currency depreciation that currently bedevils the nation,” he said.

    For the short term, he suggested enforcement of currency regulations, transparent communication, official transactions, remittance oversight, alongside monitoring and compliance as necessary in addressing the challenges.

    He said: “The CBN should immediately announce the pegging of the naira to between 750 to 850 naira to the USD effective from March 21, 2024, and enforce stricter regulations on currency transactions. This includes hefty fines, prosecution of breach of laws, and confiscation of funds involved in transactions that violate a specified exchange rate band, such as the 15 percent maximum difference from the official rate.

    “The government should consistently communicate its policy intentions and economic measures to the public to strengthen confidence in the nation’s economic management.

    “All government agencies, at every level, should be mandated to conduct their transactions at the official rate, and severe penalties should be imposed for violations. On no account should government money go to the parallel market, directly or indirectly (through its contractors or government agents) without a certificate issued by the CBN or the Independent Emergency Economic Intelligence Committee. Any transaction above a certain threshold (to be fixed by the CBN every 90 days) must be backed by an undertaking by the financial institution/to pay the penalty of at least double the size of transaction if the facts used for seeking the approval subsequently becomes inaccurate.”

    Oye proposed monitoring of financial institutions and enforcing compliance with forex regulations. This he noted would involve using the banking system to monitor and regulate the flow of foreign exchange in and out of the parallel market.

    On remittance oversight, the NACCIMA boss suggested the implementation of policies to ensure that inflows from remittances are properly channeled through the official banking system and are used to support the Naira.

    For the medium term measures, Oye pushed for “Diversification initiatives, financial literacy and inclusion, investment in infrastructure, support for Small and Medium Enterprises (SMEs) and inflation targeting, among others.

    “Invest in and promote non-oil sectors to increase exports and reduce reliance on oil revenues. Sectors such as agriculture, manufacturing, and services should be the focus of targeted policy support,” he said.

    “Enhance financial literacy to encourage the use of official financial channels and discourage reliance on the parallel market.

    “Invest in infrastructure to reduce the cost of doing business and make Nigerian exports more competitive, provide incentives and easier access to finance for SMEs to boost local production and exports and implement a clear inflation targeting framework to guide monetary policy, aimed at achieving price stability.”

    Oye further urged all government MDAs currently using the undervalued parallel market rate to immediately revert to the CBN determined rate of 800-850 for their USD denominated transactions, such as for payment of customs duties, etc.

    This, he insisted, will act as a major signpost that the government is serious about its decision to rein in and defend the naira. The CBN must continue to defend the naira in policies, words and action (money).

    On long term strategies to address the challenges, Oye urged the CBN on maintaining consistency in economic policies to foster a stable environment for investment and economic planning.

    He said: “Build the capacity of economic institutions to effectively regulate and supervise the financial sector and enforce laws against economic sabotage.

    “Undertake structural reforms to improve the business environment, such as streamlining business registration, enforcing contracts, and simplifying tax systems.

    “Invest in education and healthcare to improve labour productivity and the innovation potential, and work towards increasing foreign reserves to buffer against external shocks, which can be achieved by improving trade balances and attracting foreign investment.

     “Implementing these measures will require collaboration between various government agencies, including the Ministry of Industry, Trade and Investment, the Central Bank of Nigeria, the Ministry of Finance, and other relevant stakeholders.

    “Additionally, it is important to engage with international partners, such as the International Monetary Fund (IMF) and the World Bank, for technical assistance and financial support where necessary.

    “The overarching goal is to create a stable macroeconomic environment that fosters confidence among consumers and investors, ultimately leading to a stronger Naira and reduced inflation. Robust enforcement of regulations, economic diversification, and sustained institutional reforms are keys to achieving these objectives.

    Read Also: NACCIMA to NLC: justify proposed N1m minimum wage

    “The importance of establishing an independent emergency financial intelligence committee with private sector leadership and government representation cannot be overemphasized because of Its certain potential to provide several benefits in the context of reining in the Naira and controlling inflation in Nigeria.”

    Meanwhile, in his letter to the Minister of Trade and Investment, entitled: “Strategic actions to mitigate hyperinflation and uphold local and international agreements in the wake of naira devaluation,” Oye explained that Nigeria stands at a crossroads where the convergence of economic prowess and policy prudence must be harnessed to ensure the well-being of our economy, the stability of the Naira, and the prosperity of our people.

    He said: “The recent precipitous devaluation of the Naira has triggered hyperinflation, undermining both the citizenry and the business community. This situation has, in effect, breached the implicit contract between the Nigerian government and its people, wherein the government is entrusted with the stewardship of policies that safeguard against such economic volatility.

    “The Ministry of Investment, Trade, and Industry, as a custodian of economic guidance and a sentinel against policy discordance, plays a critical role in steering the Federal Government towards adherence to local and international financial and trade agreements.

    “It is imperative that the policies enacted by the Government do not frustrate the ability of private businesses in Nigeria to keep contractual agreements with their business partners. Also, that our Government’s commitment with local businesses, bilateral/multilateral Institutions, the ECOWAS, the African Continental Free Trade Area (AfCFTA), and the World Trade Organization (WTO) agreements amongst others, are not contravened by Federal Government Policies.”

    In order to tackle the current economic challenges and fulfill domestic and international obligations, the NACCIMA boss proposed the following steps: Fiscal policy stabilization, international agreement compliance, currency management reassessment, reinvigorate agribusiness and industrial growth, financial sector reform, forward contract resolution and MDA board reconstitution

     “It is our strong belief that if these recommendations are implemented, we will witness a turnaround in the country’s fiscal and trade fortunes,” he said.

  • NACCIMA to NLC: justify proposed N1m minimum wage

    NACCIMA to NLC: justify proposed N1m minimum wage

    The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has underscored the need to follow due process and ensure that all discussions around the adjustment of the minimum wage were based on a comprehensive understanding of the facts and implications and that the new wage should reflect  the nation’s economic realities.

    Oye, stated this in response to an interview given by the President of the National Labour Congress (NLC), Joe Ajaero on Arise Television, regarding the proposed new monthly minimum wage of N1 million.

    The NACCIMA boss said it would be premature and unfair for NACCIMA, or any other member of the recently constituted 37-man Committee, to join issues with the NLC President or engage in public debates on the matter without first having the opportunity to review the facts and basis of the proposed N1 million minimum wage.

     “I am writing in response to the recent interview given by the President of the National Labour Congress (NLC), Mr. Joe Ajaero, on Arise Television, regarding the proposed new monthly minimum wage of N1 million, he said.

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    “First and foremost, NACCIMA acknowledges the critical role played by the Nigerian workforce in driving the economic growth and development of our nation. It is the hard work and dedication of our workers that sustain the businesses and industries that NACCIMA proudly represents. We also recognize that the current economic climate, characterised by high inflation and a depreciating Naira, exerts significant pressure on the standard of living of workers and their families.

    “However, we must emphasise the importance of following due process and ensuring that all discussions around the adjustment of the minimum wage are based on a comprehensive understanding of the facts and implications, he stated.

    “As such,” he added, “it would be premature and unfair for NACCIMA, or any other member of the recently constituted 37-man Committee to join issues with the NLC President or engage in public debates on the matter without first having the opportunity to review the facts and basis of the proposed N1 million minimum wage.

     “We encourage all parties involved to approach this issue with a spirit of cooperation and constructive dialogue,” saying NACCIMA was committed to working alongside the NLC, the Federal Government and other stakeholders to ensure that a fair and sustainable wage structure is established, “one that reflects the economic realities of our nation and the welfare of our workforce.”

    He said in anticipation of the committee’s discussions, NACCIMA is appeals to all parties to exercise patience and to prepare for negotiations that are founded on empirical data, economic analysis and the shared goal of economic stability and prosperity for all Nigerians.

    “We stand in solidarity with the Nigerian workers in their pursuit of fair compensation. At the same time, we must balance this with the capacity of employers and the broader economic implications of wage adjustments.”

    NACCIMA, he said, is looking forward to “contributing to a dialogue that will ultimately lead to a balanced and equitable resolution that safeguards the interests of workers, businesses and the national economy.”

    “We urge all parties to reserve any judgment or action until the committee has had the opportunity to deliberate thoroughly. Rest assured, NACCIMA is devoted to the advancement of a robust economy and the betterment of our society through the promotion of responsible business practices and sustainable economic policies,” he stated.

  • JUST IN: Tame commodity prices as you increase salaries – NACCIMA tells FG

    JUST IN: Tame commodity prices as you increase salaries – NACCIMA tells FG

    The federal government has been advised to find a way to tame the escalating prices of commodities in the market if the planned upward review of Nigerian workers would be of any effect.

    The life vice president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Humphrey Ngonadi, gave the word of advice on Tuesday after the inauguration of the Tripartite Committee on National Minimum Wage, at the State House Abuja.

    Ngonadi, who is also a member of the 37-man committee, also suggested that to tame market prices of commodities, the government must first find a way to manage the volatile situation in the foreign exchange market by shoring up the value of the Naira against major foreign currencies, then prices of commodities will be manageable.

    Read Also: NACCIMA woos cosmetic manufacturers

    Ngonadi, who was fielding questions from journalists at the State House, recalled an experience, speaking of the Udoji Award in 1972 and how the increment in salaries then led to commodity price hikes in the country.

    He said: “I thank God for this initiative that the government is taking at this particular place, but I’m still being worried. We may remember some time long ago there was an Udoji Award and that was the first time the salaries of workers were increased and immediately after the increment the commodity in the market ran up to meet.

    “So while we are talking about minimum wage, I think the government, on its own side, has to think on how to bring down the prices of commodities in the market.

    “If a worker is paid N1 million as the minimum wage and a bag of rice is N900,000, the N1 million still has no meaning. So what I think is while we are thinking of minimum wage, to hike the salary of the worker, the government, on its own side, has to think of how that money will have value.

    “Having value is if a bag of rice that was N8000 yesterday is now N50,000 and you increase the salary of the workers and the price or price will be N200,000, the salary increase has no value. So I think the government is now going in the right direction, also, while we increase the salary of the workers, let the government work on the prices of commodities to come down. If the dollar steps down now, the prices of commodities will step down. My mind is going that way.”

    Details shortly…

  • NIBC, NACCIMA move to strengthen Nigeria-India partnership

    NIBC, NACCIMA move to strengthen Nigeria-India partnership

    The Nigerian India Business Council (NIBC) Nigeria in collaboration with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), with the Confederation of Indian Industry (CII) in attendance, organised the Nigeria-India Business Summit.

    The summit, which was held in Transcorp Hilton, Abuja, January 23, 2024, was an opportunity to further strengthen the growing strategic partnership and collaboration between two of the world’s most dynamic economies: Nigeria and India.

    NACCIMA, in a statement signed by its National President, Mr. Dele Kelvin Oye, said the summit also served as a testament to the potential of Nigeria’s private sector as a catalyst for economic diversification and growth.

    The presence of Oye, alongside prominent business figures such as Hajia Bola Shagaya, Dr. Kamoru Yusuf (Kam Steel) and James Uduji (Comestar), according to the statement, highlighted the collective resolve of Nigeria’s captains of industry to foster bilateral ties between Nigeria and India.

    It noted that at the heart of the grand convergence was NIBC Nigeria, which, under the visionary leadership of Sir Emeka Offor, showcased remarkable prowess in orchestrating what has been lauded as ‘a landmark in international collaboration’ and the most significant business summit.

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    The attendance of top government officials from various Nigerian States, including Gombe State Governor Alh Yahaya Inuwa, Nassarawa State Governor Engr. Abdulahi A. Sule, Niger State Governor, Alh Mohammed Umar Bago, and Katsina State Deputy Governor Alh Farouk Lawal Jobe, spoke volumes of the political support for such initiative.

    They were joined by the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite; Minister of Steel, Alh Shuaibu Abubarkar Audu; Minister of Marine and Blue Economy, Adegboyega Oyetola, Minister of Budget and Economic Planning, Alh. Atiku Bagudu; and Minister of Foreign Affairs, represented by Ambassador Akinremi Bolaji.

    Their presence demonstrated the Federal and State Governments’ commitment to nurturing an enabling environment for business and investment.

    India’s representation by the Honorable Minister of Foreign Affairs, Dr. S. Jaishankar, signified the high level of importance attached to this partnership by both nations, with business leaders like Rekha Sharma of NIBC India and Mr. Khurshed Daruvala of the CII leading the charge from the Indian side.

  • NACCIMA woos cosmetic manufacturers into Nigeria

    NACCIMA woos cosmetic manufacturers into Nigeria

    The Director General of Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Sola Obadimu has called on manufacturers of cosmetic, body, and hair care as well as other players in the beauty value chain to consider setting up production facilities in Nigeria as the as a way of creating jobs and contributing to the country’s economic development.

    He said Nigeria is a huge market with increasing demand for goods and services that many manufacturers could not ignore with improving investors’ perception bordering on security.

    Obadimu disclosed this in Lagos while declaring open the Beauty West Africa Conference and Exhibition put together by BtoB Events Limited.

    He said he was impressed with the turnout of the Beauty West Africa Conference and Exhibition, which provides a window for manufacturers, players, and people in the value chain to consolidate partnerships and develop the industry.

    The Chambers of Commerce and Industry from Benin Republic, Ghana, Cameroon, and the Gambia also attended the Beauty West Africa Conference and Exhibition.

    Obadimu said the way and manner players in the sector tuned out at the event shows Nigeria is a huge market in the sub-continent beckoning for investors to set up their businesses and add value to the economy.

    He commended the organisers for putting together an exhibition where many countries across the globe are showcasing their products and services.

    The NACCIMA Director General said: “It’s a good development for us particularly when you know the kind of perception foreigners used to have about stories of insecurity.  This shows that we can still host world-class events. And also, it signifies that Nigeria still remains a strong market with a lot of demand for products and services. But what I would like more is to see some of these companies opening an outlet in Nigeria so that some of our people can be employed. It’s a good story for us and I hope this continues.”

    Also speaking, the Managing Director of BtoB Event, Jamie Hill said the Beauty West Africa Conference and Exhibition aspires to see more cosmetics manufacturers settle for Nigeria in order to develop the beauty market.

    He, however, hopes the idea will expand exhibitors’ perception of the Nigerian market and other business areas capable of uplifting the country’s economy.

    He said: “I can say to you I’m impressed with what I’ve always seen in Nigeria and I’m sure with time more companies will be here to manufacture goods on Nigerian soil. The significant takeaway from this event is massive and I think will help grow the cosmetics market in the country.

    “By 2026, the beauty market will be worth a huge amount of money that will charge entrepreneurship. Despite the economic hardship, we won’t relent and we’re glad top government officials from different countries are here to appreciate this show and find out what the beauty market has in store. It’s also a business-to-business platform which will help in cementing partnerships. Chamber of Commerce from Cameroon, Gambia, Benin and others are here for good and I think with time more investors will come and we’ll all get there.”

    Read Also: Strike: NACCIMA urges dialogue

    In his remarks, the Exhibition Manager, Ken Baber urged investors to consider setting up their companies in Nigeria, which remains the hub of Africa’s economy.

    He said: “This event is also about encouraging manufacturers and Nigerians that this show is the hub of the exhibition. We’re happy coming together, the market is growing so much and there is a lot of potential in the country. There’s a reason for choosing Nigeria.

    “The market is growing very well and it will give manufacturers encouragement to do more. We have over three hundred and fifty companies and over five thousand exhibitors and I’m sure next year will be bigger than this. This is the message we want to pass out to Nigerians. We want the world to know we’re here for Nigerians and I believe we can both achieve amazing things.”

  • Strike: NACCIMA urges dialogue

    Strike: NACCIMA urges dialogue

    National President of NACCIMA, Dele Oye, has called for an amicable resolution regarding the deadlock between the Nigeria Labour Congress (NLC ) and the Federal Government over the near-zero palliatives for workers.

    ” I would like to urge both parties to resolve the dispute amicably in a timely manner before it escalates and negatively impacts the Nigerian economy and its citizens,” Oye said.

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    Oye, who was responding to a question over NLC’s insistence on strike to drum support for Nigerian workers argued that embarking on a strike would not be the most ideal solution as it would further worsen the economic downturn and cause unnecessary suffering to the already struggling Nigerian workforce.

    “Therefore, it is imperative for the Federal Government to take immediate and decisive action to address the concerns raised by NLC regarding the near-zero palliatives,” adding, that “by doing so, the government can demonstrate its commitment to the welfare of the Nigerian people.”

    ” I would like to appeal to both parties to prioritize dialogue and peaceful negotiations in resolving the dispute” stating that  ” it is only through constructive engagement that we can foster a harmonious and prosperous society for all Nigerians.”

  • Speedy ratification of AfCFTA agreement’ll boost economy, says NACCIMA

    Speedy ratification of AfCFTA agreement’ll boost economy, says NACCIMA

    President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Otunba Dele Oye has charged the Federal Government on the speedy ratification of the African Continental Free Trade Area (AfCFTA) Agreement to facilitate intra-African trade and boost economic integration.

    Oye, who also urged Nigerian businesses to embrace the opportunities presented by the AfCFTA, said the agreement presents an opportunity for African businesses to expand into new markets, bring new products and services, and create more jobs and wealth for the people.

    Oye spoke at the second AfCFTA Secretariat Mission in Nigeria, in conjunction with the National Action Committee on the African Continental Free Trade Agreement, NACCIMA and the business community in Nigeria.

    NACCIMA boss said: “As one of the first organisations to endorse the agreement, NACCIMA has actively supported preparations for the implementation of the AfCFTA in Nigeria.

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    “The AfCFTA presents an unprecedented opportunity for African businesses to expand into new markets, bring new products and services, and create more jobs and wealth for our people.

    “As we move into the second phase of the AfCFTA Secretariat mission here in Nigeria, I implore the government to quickly ratify the agreement.

    “The timely ratification of the AfCFTA will provide a much-needed boost to our efforts to promote intra-African trade and economic integration.”

    He added, “In closing, I call on Nigerian businesses to embrace the opportunities presented by the AfCFTA fully. As the largest economy in Africa, Nigeria has a crucial role to play in the success of this historic agreement. Let us all work together to harness the full potential of AfCFTA and make the African continent the economic powerhouse it deserves to be.”

  • How to benefit from AfCFTA, by NACCIMA President

    The National President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Hajiya Saratu Iya Aliyu, is excited by the President’s signing of the AfCFTA.

    Hajiya Aliyu said the signing of the treaty by the President was a courageous decision and a fullfilment of the will of Nigerians after a rigorous consultative process involving all stakeholders across the country.

    In a statement by the organisation’s Director-General, Amb. Ayo Olukanni, Hajiya Aliyu said now the hard work must begin if Nigeria, especially the private sector is to reap the benefits of the Agreement.

    Read also: Will AfCFTA maximise Nigeria’s economic potential?

    She said close attention must be paid to the operational phase which has commenced, especially the rules of origin, the Pan African digital payment platform, Web-based and mobile applications for business, and an African Trade Observatory Portal.

    She advised that that the Organised private sector must work closely together to enable the private businesses and manufacturers harness the potentials of the Agreement.

    She said NACCIMA was already putting finishing touches to arrangements for seminars, workshops and Advocacy programmes to enable Chambers to key into and take advantage of the opportunities under the Agreement which is expected to create a huge continental trading place on the African continent

     

  • CBN, NACCIMA to work out disbursement plan for N500b agric fund

    The Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA) has disclosed the Chamber’s involvement in strategically working with the Central Bank of Nigeria (CBN) to see that agriculture value chain in the country benefit adequately from the recently announced N500 billion agricultural fund earmarked for the sector.

    The Director General of NACCIMA, Ambassador Ayoola Olukanni, who disclosed this over the weekend in Lagos, noted that NACCIMA’s involvement was to make sure that those involved in agricultural produce for export are captured in the funds accessibility.

    He said; “Recently, the CBN Governor unveiled a new roadmap for economic growth and development and I am happy to say that NACCIMA as the voice of Nigeria business has been invited to be part of the funds which have been announced as being earmarked for a few areas of exportables.

    “With N500billion set aside by CBN, we want to strategically work with the CBN to see that Agriculture value chain in the country, and our Chamber members especially those on the Agriculture sector tap into the new programme to boost the food basket of the country.

    “We have been pushing for our members to be more engaged with various initiatives and incentives that have been announced by government. This is part of the things we are doing to expand the capacity of agric value chain programmes and projects.”

    The NACCIMA boss said the body has embarked on sensitisation of its members to enable them access various funding programs of the government that are available; stressing that the smallholder farmers and medium-scale farmers were targeted.

    Commenting on the African Continental Trade Agreement (AfCTA), he said, NACCIMA has thrown its weight behind the Government to sign and to leverage on the advantage of the trade to develop itself.

    He pointed out that AfCTA will help reposition the competitiveness of locally manufactured goods, adding that Nigeria is a major player in Africa and cannot afford to miss out.

    Olukanni pointed out that it will further help in putting the government on its toes, explaining that the trade agreement will lead to the country closing the infrastructural gap that have been existing for decades.

    Speaking on country’s competitiveness, he maintained that when proper trade policies are put in place and thoughtfully enforced, that the country has nothing to be afraid of, as improve its competitiveness.

  • NACCIMA boss seeks road map for capacity development of chambers

    The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Saratu Iya Aliyu has called on the World Chambers Congress for a Road Map for Capacity Development of Chambers to enable them make significant contributions to inclusive economic growth and development.

    She made the call while addressing delegates to the 11th World Chambers Congress in Rio de Janeiro  Brazil.

    Hajia Saratu Iya Aliyu drew attention to the positive role the Chambers movement can play in various  parts of the world including  Nigeria.

    Read Also: NACCIMA restates commitment to Nigeria’s socioeconomic growth

    She called for rethinking of the educational processes  and specifically identified continuous training and retraining to enable Chamber members and future generations to meet the challenges and opportunities unfolding in an era of e-commerce revolution, digital trade, Start Ups all of which are transforming the global  World.

    On her delegation were the President of Lagos Chambers of Commerce Industry Mines and Agriculture ,Mr Babatunde Ruwase; the Director General of NACCIMA, Amb Ayo Olukanni; Mrs Toki Mabogunje ;Chief Bayo Jimoh; President Benue Chambers, Dr Ubwa.