The president of the Abuja Chambers of Commerce and Industry (ACCI), Chief Emeka Obegolu, has addressed pressing issues affecting Nigeria’s economy, particularly the sharp decline of the naira in the foreign exchange market.
In a recent interview with selected journalists, Chief Obegolu attributed the depreciation of the naira primarily to illicit naira transactions and the undervaluation of the Nigerian currency.
He emphasised that combating corruption within the system is crucial to addressing the undue pressure on the naira.
“The core issue lies in illicit naira transactions for dollars. The government must tackle this illicit practice head-on. I am convinced that the naira is undervalued, with its true value estimated to be between 800 and 1,000 naira. The undue strain on the naira is predominantly fueled by corrupt practices rather than legitimate business activities. Thus, addressing corruption is paramount,” Obegolu stated.
Regarding food inflation, Chief Obegolu underscored the necessity for the government to implement measures aimed at boosting citizens’ purchasing power and avoid imposing arbitrary taxes and high exchange rates on imported goods. He highlighted that importers inflate prices due to the high costs associated with clearing their goods, urging governance to prioritise citizen satisfaction over revenue generation.
Chief Obegolu recommended a shift in approach for the government, advocating for support to be extended to local businesses to enhance competitiveness and encourage local production of goods currently being imported at comparable rates.
“There is no valid reason for a shoe imported from China to be cheaper than one produced in Aba. However, this pricing disparity persists today. It indicates that the Chinese have harnessed technology to reduce production costs. Therefore, the government needs to invest in technology to bolster local enterprises,” he emphasised.
Chief Obegolu also highlighted the importance of avoiding speculations and baseless accusations against bank chief executive officers regarding dollar hoarding. He urged the government to eradicate all avenues for malpractice and penalise any offenders identified by relevant authorities.
“The Economic and Financial Crimes Commission (EFCC) should present concrete evidence on how bank CEOs hoard dollars while declaring profits. Speculations can unjustly damage reputations by implicating both innocent and guilty parties alike. Therefore, reliance on factual information is crucial. We must ascertain how these activities are conducted and hold wrongdoers accountable.”
Obegolu’s insights shed light on the urgent need for concerted efforts to combat illicit financial activities, support local businesses, and ensure transparency in the financial sector to safeguard Nigeria’s economic stability and prosperity.
