One Year Of Buharinomics: Businesses Count Losses

May 29, 2016 would mark a year after the President Muhammadu Buhari-led administration took over the reins of power, but with no clear direction of where the economy is headed, businesses have

continued to pine under the yoke of stifling regulatory headwinds.Many businesses are literally fighting the battle of their lives as their corporate existence is being threatened, no thanks to the
rather hostile operating business environment.Although most of the businesses had anticipated the new government would take a while for it to gather steam, they had hoped that life would be back on an even keel in no time at all. But after almost one year, that hope has remained forlorn. A number of policies have had rippled effects on businesses across the board, chief among which is the Central Bank of Nigeria (CBN) policy restricting the use of Naira cards abroad.This is the second time the CBN is putting restrictions on the use of naira cards outside the country — one of many other policies put in place by the CBN Governor, Godwin Emefiele.Speculators had warned at the time that if the authorities in charge are not careful, there may be another devaluation of the national currency very soon. Thus many entrepreneurs have been forced to wait for the economy to stabilise before they can continue carrying out their business.Last month, the CBN Governor said that the bank will not devalue the Naira again despite calls for the devaluation of the currency in times of economic turmoil. According to Mr Emefiele, the Naira is ‘appropriately priced’.Growing concerns from stakeholders, Speaking at separate fora recently, President, Manufacturers Association of Nigeria MAN, Mr. Frank Jacobs and Director General of the Lagos Chamber of Commerce and Industry LCCI, Mr. Muda Yusuf, described as stifling the prevailing operating business environment.The MAN President noted that many operators in the nation’s real sector closed shop in 2015 due to harsh operating environment characterised by poor infrastructure, low consumer demand and unfair competition from low quality products smuggled into the country, warning that many more firms would close down due to the foreign exchange policy.While calling on the Federal Government to have a rethink on the policy by making foreign exchange available for real sector operators that need to import raw materials, he warned that if not reversed, the policy will lead to the closure of more companies.According to Yusuf, the forex restriction policy has had great danger for the Nigerian economy, especially in the first quarter of 2016.Expatiating, he said: “We believe that lifting the restriction on foreign exchange and adjusting the exchange rate of the naira will make substantial impact on the nation’s economic recovery.”