The Lagos Chamber of Commerce and Industry (LCCI) has complained that its members are having difficulties paying foreign creditors for goods imported before the CBN restriction on 41 items access to foreign exchange market in Nigeria.
The Chamber expressed fear of inability of Nigerian business operators to pay foreign creditors on account of items imported prior to the CBN policy.
LCCI further observed that some manufacturers are unable to manufacture due to lack of foreign exchange to import raw materials.
It said there is now delay in the processing of Form ‘M’ to import and meet demands which has led to loss of market share and slower consumer demand and lower profits.
According to them, “Form M opened for items on the list prior to the CBN policy are not processed for payment leading to credit defaults with foreign suppliers.
They equally said that vegetables and processed vegetable products used by Quick Service Restaurants are included in the list and this has affected negatively the availability of forex to import these materials. Sourcing locally will mean lower standards than international levels.
President of the Chamber Remi Bello during its quarterly appraisal of the economy in Lagos, also said that there are now “delays in sourcing forex to import spare parts to meet breakdown of production machinery.
Bello noted that there is now “Default in repayment agreements with foreign suppliers and banks.
The Bills for Collection opened in respect of the 41 items prior to the CBN policy have suffered non-performance.’
The Chamber further noted that companies operating in Free Trade Zones operate under statutes that exclude them from CBN Foreign Exchange regulations but that the bank has disregarded those provisions as companies operating in Free Trade Zones are meant to comply with foreign exchange restrictions.