President of the Abuja Chamber of Commerce and Industry (ACCI), Mr Emeka Obegolu who disclosed this during an interview in Abuja said to mitigate this, there is an urgent need to combat corruption within the system.
According to him, “The core issue lies in illicit naira transactions for dollars. The government must tackle this illicit practice head-on. I am convinced that the naira is undervalued, with its true value estimated to be between 800 and 1,000 naira. The undue strain on the naira is predominantly fueled by corrupt practices rather than legitimate business activities.”
While sugesting recommendations to the Nigerian government to address the current economic crisis, Mr Obegolu underscored the necessity for the government to implement measures aimed at boosting citizens’ purchasing power and avoid imposing arbitrary taxes and high exchange rates on imported goods.
Mr Obegolu emphasised that government should not solely prioritise revenue generation but should also ensure citizen’s satisfaction adding that importers inflate prices due to the high cost associated with clearing their goods.
The ACCI Boss also recommended that support should be extended to local businesses to enhance competitiveness and encourage local production of goods currently being imported at comparable rates.
“There is no valid reason for a shoe imported from China to be cheaper than one produced in Aba. However, this pricing disparity persists today. It indicates official government rates. In instances where you are unable to secure it, you resort to the foreign market.
“Subsequently, if there are unfavourable changes in exchange rates by the government before your goods arrive, you encounter challenges. This could result in additional borrowing to clear goods and navigate various checkpoints, ultimately diminishing your competitiveness.
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