Nigeria’s forex policy ‘hurting’ US companies

US secretary of commerce Penny Pritzker says foreign exchange controls by the federal government over the past year are hindering the ability of American companies to do business in Nigeria.

US companies have “been quite explicit it’s a barrier to trade”, Pritzker said in an interview Lagos on Monday, promising to take up the issue with President Muhammadu Buhari and Vice-President Yemi Osinbajo in Abuja on Tuesday.

The Central Bank of Nigeria (CBN) is expected to make a policy statement on the exchange rate after its monetary policy committee (MPC) meeting on Tuesday.

CBN has tried to keep the naira at a band of N197-N199 to $1, but falling oil prices and depleting reserves have seen the naira fall to as low as N305 in the parallel market.

The central bank has restricted official access to forex by blacklisting 41 imported items, but several analysts are unconvinced about the impact of the policy.

“It sounds like you’re starting to see factory lay-offs,” Pritzker said.

“That’s not good for Nigeria. And, of course, President Buhari is focused on inclusive growth. So, pointing out some of the contradictions between objectives and policies is part of the conversation we’ll have.”