By Samuel

Agro-commodity dealers in Nigeria have called for a reversal on a circular published by the Central Bank of Nigeria (CBN) which sought to limit “unfettered access” to foreign exchange granted to non-oil exporters.

A recent circular dated 24th September 2020 and issued by the CBN on the control of foreign exchange access clarified the term “unfettered access” granted to export proceed domiciliary account holders.

Opposing some sections of the release, the Federation of Agricultural Commodity Associations of Nigeria (FACAN) in a press statement revealed that the action of the CBN would hinder the export of agricultural produce and further encourage importation.

FACAN, the umbrella body of agricultural commodity associations, houses 55 registered commodity associations.

Speaking last Friday, the President of FACAN, Dr. Victor Iyama said the group’s demand was in the interest of the economy and particularly farmers, and also to boost revenue generation from the agricultural commodity export.

He demanded that the CBN grant unfettered access to those working hard to generate high foreign exchange for the country through their commercial activities.

Iyama said, “The implementation of the contents of the circular in question will severely hamper our various businesses, thereby disrupting and possibly limiting the contribution we are making to our developing economy.

“By attempting to curtail the ‘unfettered access’ of exporters to their lawfully repatriated proceeds, it would be inadvertently stifling the competitiveness of our members and thus limiting the potential for our continued growth.

“It is not in doubt that the CBN is tasked with the significant responsibility of maintaining financial and currency stability in our country, a task we appreciate is of a very complex and demanding nature.

“But we respectfully submit that the fact remains that the limitation of the business activities of exporters goes against the Federal Government’s transformation agenda and the promotion of non-oil export as this will negatively impact the successes achieved in the agricultural sector.”

Iyama faulted the imposition of restriction on export proceed domiciliary account by the CBN, alluding that a similar occurrence in 2006 crashed the forex market.

In the president’s remarks, the circular was in direct conflict with the provisions of the Foreign Exchange (Miscellaneous Provisions) Act and Foreign Exchange Manual and was consequently unlawful.

A reversal of the circular, he added, would lead to increased legal exports, increased revenue to the country, and an improvement in forex earnings.

Iyama, however, said that the association was ready to dialogue with the government regarding the content of the circular.