LCCI calls for review of policy on repatriation of export proceeds

The Lagos Chamber of Commerce and Industry (LCCI) has called for a review of Nigeria's policy on the repatriation of export proceeds, citing concerns raised by exporters over the current system. The Director General of LCCI, Muda Yusuf, highlighted the challenges faced by exporters who are required to exchange their export proceeds at rates set by the Central Bank of Nigeria (CBN), specifically the NAFEX window. Yusuf emphasized that the existing policy is perceived as unfair by exporters, as they are forced to exchange their foreign export proceeds at rates that do not align with market rates. This discrepancy has led to frustrations among exporters and hindered efforts to encourage liquidity in the foreign exchange market. Yusuf stressed the importance of allowing exporters the flexibility to sell their export proceeds at market rates through a willing buyer-willing seller basis, rather than being constrained by the CBN's prescribed rates. He underscored the need for a more equitable and transparent system to facilitate the repatriation of export proceeds and attract foreign investment. The interview also touched upon the challenges of FX liquidity amid the pandemic and the need for a shift towards addressing supply-side issues in the foreign exchange market. Yusuf advocated for a market-driven approach to FX rates and a reduction in regulatory barriers to support business growth and investment in Nigeria.