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Milk: NECA urges CBN to suspend Forex restriction
The Nigeria Employers’ Consultative Association has called on the Central Bank of Nigeria [@cenbank] to shelve its plan to restrict FOREX on milk importation in Nigeria.
The Nigeria Employers’ Consultative Association (NECA) has urged the Central Bank of Nigeria (CBN) to review and suspend the planned restriction of foreign exchange (Forex) for milk importation into the country.
According to NECA, going ahead with the restriction now will be catastrophic for the nation’s economy.
The Director-General of the association, Mr Timothy Olawale, made this call in Lagos on Thursday, while speaking at a business forum on the need to measure the suitability of the policy.
The details: The NECA director-general said the CBN should further engage stakeholders in extensive consultation on the issue before implementation, as it would enable the apex bank to gauge the merits and demerits of the policy in the long term.
“While employers understood and acknowledged the imperative for backward integration in the long term, the proposed foreign exchange restriction is too sudden and has the potential of crippling businesses which are already struggling.
“Without prejudice to the long-term benefits of backward integration, the short-term consequences, without a deliberate and acceptable plan by critical stakeholders can be catastrophic for local businesses in the value-chain,” he stated.
[READ MORE: CBN says milk importation “NOT BANNED” blows hot on powerful Nigerians]
Earlier development: In a recent circular released by the apex bank, the CBN Governor, Godwin Emefiele, reiterated the bank’s plan to restrict FOREX for importation of milk and other dairy products.
Emefiele said Nigeria spends between $1.2 billion to $1.5 billion annually on importation of milk and other dairy products.
- The CBN governor noted that although there were some successful attempts at producing milk locally, the vast majority of the importers still treat this national aspiration with imperial contempt.
- Subsequently, reactions have trailed the announcement from various stakeholders concerned, thus, labelling the policy as political and sudden.
- While the CBN has through various media reiterated its stand on the policy, industry analysts have called for a review of the policy in order not to complicate certain economic realities.
The way forward: The NECA boss stated that while backward integration was a welcome development, a long-term plan for massive investment would have to be made for the purpose of importing dairy cows for milk production.
According to him, the cow husbandry in Nigeria has not been proven to be good for milk production. He added that the consequences of the planned policy by the apex bank will result to:
- the unpatriotic activities of smugglers to import milk and loss of revenue for the government;
- attendant social consequences, such as massive job loss; and
- the adverse effect of capacity under-utilisation in the entire food and beverage sector.
In the meantime, NECA has emphasized that there is a need for the apex bank to reexamine the timeline for the implementation of the policy.
[READ FURTHER: Emefiele claims Nigeria loses $20 billion yearly because of oil palm neglect]
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Best payment gateway platforms to avoid scams in your business
A payment gateway is a technology used to accept and hasten debit or credit card purchases from customers.
Many businesses in Nigeria have adopted the online payment method because it is safe, fast, secure, and convenient. In recent times, fintech startups in Nigeria have developed safer payment channels to help businesses conveniently receive online payments.
What is a payment gateway?
A payment gateway is a technology used by merchants to accept debit or credit card purchases from customers. Integrating a payment gateway into your business is highly beneficial as it offers a more secure transaction process for your customers. It can also expand your customer base exponentially because many people will have access to your business at all times. The payment gateway offers faster transaction processing and customers can avoid the inconvenience of long queues.
In Nigeria, there is a wide range of payment gateways to choose from as a business owner. Before choosing a payment provider, you have to find out what each provider is offering and at what cost. Also, look out for PCI-compliant and SSL certificates in order to avoid security problems.
Here is a list of the top payment gateway providers and what they offer.
Paystack
Paystack is a growth engine for a new generation of innovative, forward-looking organizations operating in Africa. The company makes it easy for businesses to accept secure payments from multiple local and global payment channels, while also providing tools to help you retain existing customers, and acquire new ones.
Onboarding and approval take approximately 30 minutes, Paystack accepts payment in USD, GHC, NGN; and offers a wide range of payment methods like Card, Bank Account, Bank Transfer, USSD, Visa QR, and Mobile Money.
Pricing
- Integrating Paystack is 100% free.
- Paystack charges 1.5% + ₦100 for local transactions and 3.9% + ₦100 for international transactions.
- ₦100 fee is waived for transactions less than ₦2500.
Flutterwave
Flutterwave provides the easiest and most reliable payment solution for businesses anywhere in the world. The company makes it easier for Africans to build global businesses that can make and accept any payment, from anywhere across Africa and beyond.
Onboarding and approval happen immediately. Flutterwave offers a wide range of payment methods like Mastercard, VISA, Bank Account, USSD, Bank Transfer, POS, and Visa QR (for local payments); and Mastercard, VISA, and AMEX (for international payments).
Pricing
- Integrating Flutterwave is free.
- Flutterwave charges 1.4% for local transactions and 3.8% for international transactions.
- Processing fees are capped at a maximum of NGN 2,000.
Remita
Remita is a payment solution that helps individuals and businesses make and receive payments, pay bills, and manage their finances across multiple banks. Remita accepts payment in Naira and USD.
Remita offers a wide range of payment methods including Internet Banking, Debit/Credit Cards, Bank Branch, POS Terminals, Mobile Wallet, Cash Agents, mPOS, Direct Debit, Standing Order, and Electronic Purse.
Pricing
- Setting up Remita for your business is free.
- Remita charges 2% for local transactions and 4% for foreign transactions.
Interswitch Webpay
Interswitch is Nigeria’s leading technology-driven digital payments company, helping to shape the payments ecosystem across the growing e-commerce sector in Africa. Interswitch offers a wide range of payment methods including all Nigerian cards, Verve, MasterCard, and Visa. Onboarding and approval take 1 – 2 weeks approximately.
Pricing
- Interswitch charges a one-time integration fee of N150,000.
- For transactions below N133,333, a fee of 1.5% applies, and N2,000 flat fee for transactions above N133,333.
PayU
PayU is a global payment platform that provides a secure way for individuals and merchants to accept and process online payments without the need for their own websites. PayU offers a variety of payment methods including Mastercard credit and debit cards, Verve, Visa and EFT bank transfer.
Pricing
- PayU has a free setup cost.
- It has a 2% service charge on all transactions.
Voguepay
Voguepay is an online payment gateway that allows businesses to process payments in any currency from customers all around the world. Vogue accepts payments via local and international payment methods including Verve, Visa, Mastercard, Bank Transfer, and Voguepay wallets.
Pricing
- Vogue pay charges N1500 (with Corporate Affairs Commission Certificate) and N2500 (with Government issued Identity cards) for setup.
- Local transactions attract a 1.5% charge, while international transactions attract a 3.8% charge.
- Onboarding and approval to Voguepay take between 1-5 days.
Monnify
Monnify is a payment gateway that allows businesses to seamlessly process payments from customers from multiple payment channels. It provides an easier and faster way for businesses to receive payments from customers on their web and mobile applications.
Monnify accepts payments via USSD, Internet banking, mobile banking app, and all Nigerian debit cards.
Pricing
- Monnify setup fees and maintenance costs are free.
- The fee for account transfers is capped at N500 per transaction or a flat rate of N300 (excluding VAT).
- The card fee is capped at N2000 per transaction.
Adopting a payment gateway for your online business can reduce the risk of fraud and also help you retain your customers. This means that your business is open 24/7 and your customers can shop at any time from the comfort of their homes.
