CEO CPPE Muda Yusuf highlightS steps for economic managers
Written by News Room on December 23, 2021
The Chief Executive Officer, Centre for the Promotion of Private Enterprises, Muda Yusuf, has highlighted steps for economic managers to follow to mitigate the current crisis the impact of foreign exchange is having on real sector operators.
Yusuf at the 2021 workshop and awards ceremony of the Chamber of Commerce and Industry Correspondents Association of Nigeria (CICAN), advised that an adoption of a flexible exchange rate regime would improve liquidity in the forex market, while also reducing uncertainty and enhancing investors’ confidence.
He also highlighted the need to deepen the autonomous foreign exchange market through the liberalisation of inflows from export proceeds, diaspora remittances, multinational companies, donor agencies, diplomatic missions, adding that market rates should be allowed to prevail in the autonomous window.
According to him, the Nigerian economy has the capacity to weather the current turmoil if the policy contexts are right.
He said the cost of production is high because the sector is import-dependent for raw materials, stressing that low sales and turnover are also being affected by increase in price which has an effect on demand.
He noted that despite the numerous policies and measures that have been articulated by successive governments, manufacturing contribution to GDP remains less than 10 per cent on average over this period.