The business sector in Nigeria decried the challenge of access to foreign exchange. The business executives believe that the forex aspect needs overhauling to improve the West African nation’s economy.
We believe that our readers must learn about this forex news in Nigeria, especially if they are potential investors. This report tackles the need to address the country’s forex industry issues which have long adversely affected investors.
Based on the news posted online by the Nigerian national newspaper This Day, representatives from the Manufacturers Association of Nigeria (MAN) and the Oil Producers Trade Section (OPTS) have expressed their concern about the African nation’s business sector problems.
Timi Austen-Peters confirmed that one of them is the forex issue. The MAN representative pointed out that even in people’s daily lives, foreign exchange is a concern.
This problem comes along with other issues like access to funding and sufficient power supply, per Austen-Peters. Dorman Long Engineering’s chairman affirmed that these dilemmas are some of the concerns that Nigerian manufacturers face.
Austen-Peters also pointed out that the forex problem impacts business activities like the importation of hundreds of thousands of tons of steel needed to produce goods or services. The MAN executive relayed that the Nigerian government’s developmental role could not be overstated.
Austen-Peters also remarked that an enabling environment would be very significant for the country to manufacture effectively. Mike Sangster said that importing materials for production remains an issue.
The OPTS chairman and Total Energies’ managing director affirmed that this dilemma had been caused by the challenges of accessing forex for large-scale projects. Sangster also mentioned the high cost of doing business in Nigeria.
He said that it is pointless to have Chinese technology in the West African territory as it cannot be used due to the current business environment. Plus, the OPTS executive emphasized that there is also a massive gap in Africa in terms of technology.
Sangster said that the infrastructure value chain needs improvement as it is among the challenges to technology transfer. He pointed out that investors pour their funds to Nigeria for commercial terms.
Hence, Sangster said that if these investors feel that the business terms are unpleasant, they will hold back their investment. He suggested taking concerted and conscious steps to entice investors.
Resolving forex and other business issues in Nigeria will facilitate realizing the country’s economic potential, per Sangster. We agree with the business executives in this report. Foreign investments significantly involve forex.
We think that if the Nigerian government resolves the problem involving access to foreign exchange, we think that the country can easily attract global investors. This auspicious scenario could eventually lead to a flourishing Nigerian economy in the long run.