• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Thursday, July 31, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Forex Scarcity Hinders Capacity To Create Jobs, Retain Existing Employment – Analyst

by Kingsley Okoh
3 years ago
in Business, News
Forex
Share on WhatsAppShare on FacebookShare on XTelegram

The director, Centre for Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has said forex scarcity in the country has greatly endangered capacity to create new jobs and retain existing employment.

 

Advertisement

Invariably, the CPPE boss noted that the sharp depreciation of the exchange rate and operation of the parallel market, which is over 300 per cent due to the scarcity at the official window, has worsened the profitability of investments in the first half of the year 2022.

 

According to the founder and the chief executive officer (CEO) of CPPE, Dr. Muda Yusuf, believes that many businesses have suffered serious dislocations as a consequence of foreign exchange liquidity challenges, volatility and the depreciation of the currency.

“These have severely affected businesses across all sectors of the economy. Costs of operation and production have gone up from between 30-100% as a result of the exchange rate crisis,” he said.

RELATED

Edun Hails Adeniyi, Says Customs Contribution Crucial For Actualising N49trn 2025 Budget

JUST-IN: Tinubu Extends Tenure Of Customs’ Boss Adeniyi By 1 Year

27 minutes ago
Oyo Gov’t Plans To Digitalise House Numbering

Oyo Gov’t Plans To Digitalise House Numbering

35 minutes ago

 

He noted that, output have declined significantly in many industries because of the challenges of accessing raw materials due to the scarcity of foreign exchange, while many players in the economy now resort to the patronage of the parallel market at very prohibitive cost, as very little access exist on the official window.
“The dysfunctional foreign exchange policy has negatively impacted Foreign Direct Investment, Foreign Portfolio Investment as well as other capital inflows into the country.
“The multiple exchange rates, and the huge parallel market premium in the forex market remain major downside risks to investment growth and attraction of foreign capital into the economy. This has continued to weaken the supply side of the foreign exchange market,” he pointed out.
Yusuf lamented that the inability of foreign investors to repatriate their profits and dividends as well as incomes have created considerable perception, reputational and country risk issues for the Nigerian economy.
All of these have been responsible for the sharp decline in the capital importation in recent years, he said.
He listed among others, high cost of production due to high import dependence of manufacturing sector for imported raw materials as implications of the foreign exchange crisis for the investors
Others include; high operating costs across businesses in practically all sectors of the economy, low sales and turnover because of the increase in price and effect on demand and erosion of profit margins because not all the additional cost can be passed on to the consumers.
According to the CPPE boss, the Nigerian economy, over the past six months, was characterised by diverse economic vulnerabilities, that include; unprecedented surge in energy prices which had a very huge adverse effect on economic players across all sectors, unprecedented level of currency depreciation and currency volatility, increasingly weak fiscal space, acute foreign exchange scarcity with very profound effects on investors across all sectors, rising public debt and debt service burden, worsening security situation and elevated political risk as a result of political transition processes and activities.
“All these headwinds have had devastating effects on businesses in the first half of the year. However, the economy continues to demonstrate resilience amid all of these harsh investment environments,” he said.
He however stated that the biggest concerns of economic players in the first six months of the year was the high and increasing energy costs.
“Investors across sectors in the economy are concerned about the high and increasing energy costs especially the cost of diesel which has gone up by over 300 per cent, the cost of aviation fuel which has gone up by another 300 per cent, the cost of gas which has increased by over 100 per cent . The cost of PMS is still moderately tolerable because of the subsidy regime that is still currently being provided by government,” he stressed.
On fiscal operations, Yusuf stated that, the figures released by the finance minister, Mrs. Zainab Ahmed, during the presentation of the 2023-2025 Medium Term Expenditure Framework, painted a gloomy and disturbing picture of the state of government finances, suggesting that, the government is on the brink of bankruptcy.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel




SendShareTweetShare
Previous Post

COVID-19: Firm Unveils Eco-Friendly Diaper, Sanitary Pad

Next Post

9.7m Workers Join Contributory Pension Scheme Since Inception – PenCom

Kingsley Okoh

Kingsley Okoh

You May Like

Edun Hails Adeniyi, Says Customs Contribution Crucial For Actualising N49trn 2025 Budget
News

JUST-IN: Tinubu Extends Tenure Of Customs’ Boss Adeniyi By 1 Year

2025/07/31
Oyo Gov’t Plans To Digitalise House Numbering
News

Oyo Gov’t Plans To Digitalise House Numbering

2025/07/31
CDS Tasks Niger Delta Host Communities On Ownership Of National Assets
News

Armed Forces Radio Has Blocked Terrorists Propaganda, Misinformation — CDS

2025/07/31
BBNaija10: ‘Dede Behaves As If She Doesn’t Use Toilet’, Kuture Complains
Entertainment

BBNaija10: ‘Dede Behaves As If She Doesn’t Use Toilet’, Kuture Complains

2025/07/31
ljaw Seeks Revival Of Sea Ports In Niger Delta
News

Security Operatives, Youths Apprehend Drug Baron

2025/07/31
Ramadan: Let’s Bury Ethnoreligious Biases For Peace, Gov Eno Urges Muslims
News

Akwa Ibom Gov’t Adopts TSA To Curb Fraud

2025/07/31
Leadership Conference advertisement

LATEST

Ex-Barcelona Midfielder Perez Hospitalised After Dog Bite On Genitals

JUST-IN: Tinubu Extends Tenure Of Customs’ Boss Adeniyi By 1 Year

Oyo Gov’t Plans To Digitalise House Numbering

Armed Forces Radio Has Blocked Terrorists Propaganda, Misinformation — CDS

JUST-IN: Kwara Court Sentences Abdulrahman Bello To Death For Killing Final Year Student Hafsoh

BBNaija10: ‘Dede Behaves As If She Doesn’t Use Toilet’, Kuture Complains

2027: Zoning, Automatic Ticket Anti-democratic, Forum Leader Tells PDP

Security Operatives, Youths Apprehend Drug Baron

Akwa Ibom Gov’t Adopts TSA To Curb Fraud

BBNaija10: Drama As Big Soso, Imisi Quarrel Over Food

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.