LCCI calls for institutional re-organisation in NNPCL, CBN
…Kicks against the recognition of BDCs as unofficial markets
The Lagos Chamber of Commerce and Industry (LCCI) has called for an institutional reorganisation of the Nigerian National Petroleum Company Limited (NNPCL) and the Central Bank of Nigeria (CBN).
This stated at the 2023 Mid-Year Economic Review and Outlook jointly organised by the Lagos Chamber of Commerce and Industry (LCCI) and Cordros Capital to point out opportunities for business growth and sustainability in Nigeria and the global market.
In his opening remarks, LCCI President, Asiwaju, Dr. Michael Olawale-Cole indicated that the half-yearly event reviewed vital policy developments and macroeconomic performance. It also discusses the outlook and expectations for the next half, focusing on risks and opportunities.
The association also noted that the reorganisation of the agencies are necessary to improve transparency and accountability.
The LCCI report further noted that the operating environment of NNPCL is somewhat opaque describing it as anti-competition.
“The oil sector will attract the desired investment if the government liberalizes fuel import licenses and other vital activities in the midstream and downstream,” the report read.
LCCI also kicked against the recognition of Bureau De change operators as unofficial markets.
Explaining this, LCCI said, “BDCs should not be referred to as parallel or unofficial markets, because they are officially licensed to trade.”
Recall that the CBN in a statement published on its website on Friday evening, the CBN said the spread on buying and selling of FX by BDCs will fail within a range -2.5 per cent to +2.5 per cent of the FX window’s average rate from the previous day. The naira jumped this week, exchanging for N855/$1 on the parallel market as of Friday morning and trading at around N744 on the I&E window.
In line with the new operational guidelines, the CBN will also require BDCs to submit periodic financial reports on the Financial Institution Forex Rendition System (FIFX). The CBN’s thinking is that BDCs can help increase the supply of FX in the market and ease pressure on the rates.
