Emefiele ‘taking a bold step’ on forex policy

Nigeria Agribusiness Group (NABG) led by Sani Dangote has expressed support for Central Bank of Nigeria’s foreign exchange restriction policy and its refusal to devalue the naira.

In the past few months, CBN has been under pressure over its decision to ban sourcing of foreign exchange for the importation of 41 items for which Nigeria has comparative advantage, as well as its resistance to international pressure for the devaluation of the nation’s currency.

Dangote emphasized that the NABG, under him, believes that the CBN forex policy, especially as it affects commodities like tomato puree, rice, palm oil and other agricultural produce, is appropriate.

The group said it is the correct step to save the nation’s economy from impending crisis and return it to the path of sustainable growth.

Dangote, who spoke at the fourth EU-Nigeria business forum in Lagos, commended the CBN governor for such a bold step.

“We commend the Central Bank Governor, Godwin Emefiele, for taking this bold step. We have companies who employ thousands of Nigerians; we have small farm holders who will produce for the country’s need,” he said.

“We cannot do this overnight but it has to start from somewhere and if the federal government kills the incentive to start from the grass root level, you can never reach the level to be self-sufficient.”

He said the decision by CBN is the right move required to stimulate local production, maintaining that allowing imports would only suppress local production.

“If we do not stimulate it now, when will there be the time to do this? Once you allow some imports to come in and be dumped on the local market it will certainly  surpress local incentive and indigenous initiative and there is no way any investor will deploy  resources to develop the sector, there is no way the local farmers, rural farmers will find the opportunity to grow.

“This is the right step forward, whatever Nigeria has the capacity to produce must be encouraged to grow. Whether we have trillions of dollars in the government coffers or not, the federal government should continue with this policy until local capacity is enhanced.”

He urged the CBN to make more capital and funding available and affordable for the farmers to grow in order to achieve the nation’s quest for economic diversification.

NABG also commended CBN on a recent agreement to provide funds for tomato out-growers in the country towards enhancing their capacity to boost output and meet the requirement of tomato-processing companies in the country.

Dangote then tasked the commercial banks and other financial institutions in the country to support the effort of CBN in funding agricultural enterprises in the country.

“To do this, there is need ‎to empower seed development, empower research development institutions, enhance mechanisation, training for the farmers and provide affordable long-term loans for farmers.

“If these are done, I can guarantee that in the next year or two, we will see a very high level of change in terms of the capacity to produce.”

NABG signed a Memorandum of Understanding (MoU) with Top Sector Agric Food, the agribusiness development unit of the Dutch government, to facilitate and encourage the growth of agribusiness in Nigeria.

Dangote indicated that the group had entered into similar partnerships with other foreign organisations, including one with Adepta of France and the Kenya Agribusiness Group, while stating that plans were afoot for similar MoUs to be signed with Irish and UK agribusiness groups.

Francis Nwabogu, managing director, Presco Oil Palm Plc, who also spoke on the forex policy, said ‎the decision by the CBN would at its initial stage be challenging for businesses, but would benefit the economy at large in no distant time.

“Looking at this decision from the national point of ‎view, it is better for us to cry now and laugh later than to laugh now and cry later.”

He added that the next five or six years from now, with about  five or six companies planting consistently, a lot of economic activities will be generated, thousands of people will be employed, government will earn more tax revenue and ‎it will be a win-win situation for the entire country.

Emmanuel Ijewere, NABG coordinator, said Nigeria must be ready to experience what he called a “short-term suffering” to achieve economic growth and development.