It is important for the Central Bank of Nigeria to ensure it keeps to its promise of boosting the nation’s Forex supply, manufacturers and experts have demanded.

Ola Oladele, CFA, in a telephone  with Nairametrics, explained that the apex bank should keep its word, as the persistent downtrend in the currency black market persists. She said:

“The depreciation of the naira in the parallel market is because of low supply of FX from official sources and less optimistic outlook on the economy due to falling oil prices.

“The Bureau De Change operators haven’t received supply from official sources since our borders were closed and the crash in oil prices has made natural sellers of FX more cautious.

“We hope that the recent statements by the regulator will restore confidence and subsequently, supply to the market.”

Meanwhile, manufacturers are also experiencing tough times getting dollars to fulfill their forex obligations, even when having so much naira to trade with, according to Bloomberg News.

CBN has been rationing forex to protect the naira amid the fall in crude oil prices and deadly COVID-19 pandemic that has reduced the country’s foreign earnings.

Dollar scarcity and a weakening naira are already adding to inflation in a country that imports all major products used by pharmaceutical firms.

“Manufacturers can’t open letters of credit as dwindling oil receipts and the lack of intervention by the central bank pushed international banks to withdraw credit relationships with local lenders,” said Fidelis Ayebae, the Chief Executive Officer of Fidson Healthcare Nigeria Plc.

“You now have a situation where nobody is holding letters of credit, no manufacturer is getting anything from their suppliers abroad because even the ones that we owe, we are not able to pay,” said Ayebae, who also heads the 180-member pharmaceutical group of Nigeria’s manufacturers’ association. “Some companies may shut 45 days from now if they are not able to import.”

(READ MORE: CBN’s MPC unlikely to cut rates, as Nigeria’s foreign reserves hit $36.16 billion)

The administrative costs of the pharmaceutical company gained at least 22% due to the current headwinds and it may be forced to close operations from July, if the scarcity of dollar persists.

While the drug maker, according to Bloomberg news, got N2.5 billion from the central bank’s COVID-19 intervention fund, he has only secured $80,000.

“I need dollar equivalent of N2.5 billion. If I get $5 million today, I will be an incredibly happy man,” he added.

(READ MORE: Naira appreciates at the I&E window, as CBN Governor promises more liquidity)

However, recently, CBN started the weekly dollar sales of $100 million for small businesses and individuals in genuine need of foreign exchange.

Still, CBN Governor, Godwin Emefiele some days ago insisted that there were no shortage of dollars, and sales would resume to bureaux de change when the COVID-19 induced lockdown had eased sufficiently.

If Nigeria is to join the richer countries of the world, she must invest aggressively in technology, improve local production, and cut cost of governance.

These were some of the opinions presented by experts during a virtual colloquium tagged Government Unusual: Innovative Economic Solutions to Unlock Mass Prosperity held on Saturday afternoon.

While making a presentation at the Rauf Aregbesola colloquium, Governor Nasir El Rufai noted that investment in digital technology must become a priority if Africa hoped to join the league of developed countries. He said,

“Investing aggressively in digital technology is the only way Africa can preserve its growth and continue to lift people out of poverty. We must invest in the digital because henceforth, every sector of governance and living will depend on the digital.”

He added that one of the lessons from the COVID-19 pandemic was the need for Nigeria to embrace technological advancement so that Nigerians could benefit from the numerous opportunities that came with it; and pointed at the recent decision to crash right of way charges as the first way to go.

In agreement with his position, CEO Lotus Capital, Mrs Hajara Adeola, added that investment in technology was the best way to get Nigerian youths to take advantage of global opportunities without migrating to other countries.

“Nigeria needs to look for a way to move from the agrarian and industrial into the services sector, and ICT is a way to do that. Our youths are innovative and capable, so if we can train our youths in technology, then we can get homegrown solutions to some of our issues without them having to migrate” she said during the panel discussion.

Infrastructure for business

Unless infrastructural developments are shaped and directed towards business developments, the country will continue to invest in infrastructure which have no benefits.

“You don’t shape infrastructure as how you think it makes sense. you do it in a way that follows the money because ultimately that is where prosperity comes for everybody,” Chairman of Citibank Nigeria limited, Yemi Cardoso said.

The global terrain continues to change and Nigeria must develop a framework to align its growth strategy with the changes, identifying and eliminating bottlenecks as we go forward.

The colloquium, which was held online (via zoom), had over 700 participants across several countries, and was also streamed live on Youtube.

Panelists at the colloquium were Mallam Nasir El-Rufai, Governor, Kaduna State; Sen. Abubakar Bagudu, Governor, Kebbi State; Mrs. Hajara Adeola, CEO, Lotus Capital Limited; Mr. Bismarck Rewane, CEO, Financial Derivatives; Dr. Joe Abah, Country Director, Development Alternatives Incorporated (DAI); Dr. Yemi Cardoso, Chairman, Citibank Nigeria, and Boason Omofaye, the Moderator.

Dr Yemi Kale, Statistician General of the federation and CEO of the National Bureau of Statistics (NBS) was also present.

Governor of Lagos state, Babajide Sanwo-Olu has flagged off the construction of the Lekki regional road, the long-awaited road, which is expected to decongest the constant traffic jam along the main Lekki-Epe Expressway, by linking the Lekki-Epe Expressway at Victoria Garden City (VGC) Junction to the Freedom Way in Eti Osa.

“When we give a commitment, we stand by it. Our word is our bond. We know what people go through on the Lekki-Epe way as a result of traffic. We are moved to hasten the process of putting the Regional Road in place to bring relief to our citizens working and living in this axis” Sanwo-Olu said at the ground breaking ceremony on Saturday.

Today, I flagged off the construction of the much-awaited Regional Road at Eti-Osa. The road will link VGC to Lekki and also decongest the main Lekki-Epe Expressway. With the flag off of this critical road infrastructure, we are keeping the promise we made to Lagosians. pic.twitter.com/j9LM8CH4y8

— Babajide Sanwo-Olu (@jidesanwoolu) May 30, 2020

The governor added that the project is expected to run for the next two years and should be ready for commissioning in 2022, when his administration celebrates its third anniversary in office.

In addition to providing an alternate route for reisdents, the road is expected to improve socio-economic activities on the Lekki-Epe axis.

The 8.75 kilometre-long road is being undertaken by Messrs Hi-Tech Construction Company Limited, and is expected to usher in the construction of the proposed Fourth Mainland Bridge which is also expected to start from the Lekki-Epe axis.

“Within the first quarter of next year, we would have identified the best bidder for the construction of Fourth Mainland Bridge, which will extend from Eti Osa to Ikorodu and burst out of Lagos-Ibadan Expressway. This project will have great impact on our traffic management and transportation blueprint,” he said.

Both infrastructures are considered pivotal to the government’s traffic management strategy, and the efforts to reduce commute time for Lagosians.

“We know what people go through on the Lekki-Epe Expressway as a result of traffic. We are moved by the pains to hasten the process of putting the Regional Road in place to bring the long sought relief to our citizens working and living on this axis. Today, we are here for the ground-breaking ceremony to start work on this critical infrastructure,” he added.

The governor also assured that the contractor, Hi-Tech will be held to its promise to deliver in 24 months’ time, as plans have been put in place for exigencies that may arise in the course of the construction work.

No encroachments will be tolerated

The governor also warned that stiff penalties await individuals and property developers who encroached the alignments of the road, as the Ministry of Physical Planning and Urban Development has been directed to sanction anyone found culpable of compromising the planning approval and right-of-way of the road.

“The Regional Road alignment has been gazetted long time ago, but we realise people deliberately flouted our approved plan for the road. I have instructed the Commissioner for Physical Planning and Urban Development to discipline and sanction officials that have been found culpable to compromise any form of approval for the right-of-way. They will be punished with people who raise properties on the approved alignment” Sanwo-Olu warned.

He appealed with residents to tolerate the temporary hardship that the project could cause, and cooperate with the government and the contractor to make the project a reality.