NACCIMA writes CBN, proffers solutions to naira depreciation, inflation

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has proffered short, medium, and long-term strategies to address naira depreciation, inflation surge, and ensure economic prosperity for the country.

NACCIMA made the recommendations in separate letters addressed to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso; and the Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite.

The association, in the letter written by its National President, Dele Kelvin Oye, urged the CBN to immediately announce the pegging of the naira to between N750 to N850 naira to dollar effective from March 21, 2024, and enforce stricter regulations on currency transactions.

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

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

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“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.”

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

For the medium-term measures, the NACCIMA boss advocated for diversification initiatives, financial literacy and inclusion, investment in infrastructure, support for Small and Medium Enterprises (SMEs), and inflation targeting, among others.

“There is the need to 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 stated.

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

The NACCIMA president added: “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.”

Oye, therefore, proposed fiscal policy stabilisation, international agreement compliance, currency management reassessment, reinvigorate agribusiness and industrial growth, financial sector reform, forward contract resolution, and MDA board reconstitution as the solutions to the current economic challenges.

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

The Star