Dr. Kayode Farinto, a former acting President of the Association of Nigerian Licensed Customs Agent (ANLCA) has called for a fixed exchange rate in the clearance of goods in the nation’s seaports and airports.
This is even as Farinto reserved harsh criticism for the Emenike Nwokeoji led ANLCA over the approach to addressing the Central Bank of Nigeria’s (CBN) recent policy directive on fluctuating exchange rates.
Farinto’s positions were contained in a press release issued on Monday, where he also highlighted what he perceives as shortcomings in ANLCA’s response to the CBN’s measures, while also advocating for a fixed exchange rate regime.
While commending the efforts of the Federal Government, National Assembly in attempting to tackle the issue of fluctuating exchange rates in customs clearance processes over the past three weeks, Farinto expressed disappointment that ANLCA’s advice to implement a predictive exchange rate on a quarterly basis was disregarded by the CBN in its recent policy statement.
While acknowledging the CBN’s directive advising the adoption of the closing foreign exchange rate on the date of opening Form “M” for importation of goods as a positive step, Farinto stressed the need for a more comprehensive solution.
The former ANLCA acting President argued that the directive, while beneficial, does not address the fundamental issue of the fluctuating exchange rate and merely serves as a temporary fix.
This is even as he proposed the adoption of a fixed exchange rate regime, suggesting a rate of ₦1000 to $1 for customs purposes and cargo clearance from January to June, as an example. He believes that such a fixed rate would stabilize importation processes and instill confidence in importers, thereby preventing declines in the ports industry.
Moreover, Farinto criticized the CBN’s revised regulatory and supervisory guidelines for Bureau de Change operations, asserting that they would only empower certain groups to control the economy through hoarding and manipulation of the dollar. He called for a complete overhaul of the CBN’s systems, particularly within departments responsible for regulating such operations, to address these issues effectively.
Addressing the issue of the Nigerian Export Proceeds (NXP) system, Farinto emphasized the importance of its implementation in strengthening the Naira. He urged the CBN to prioritize this matter and ensure compliance across all exports to prevent further weakening of the currency.
