Stakeholders pick holes in Tinubu’s reforms, knock CBN for FX, cash crises

• Demands immediate action on power, industrial hubs

Stakeholders at the Abuja Chamber of Commerce and Industry (ACCI), on Tuesday, raised concerns over the loopholes in the policy direction of President Bola Tinubu as well as the foreign exchange crisis and other issues that could have been better managed by the Central Bank of Nigeria (CBN).

They queried the neglect of the Abuja industrial clusters, where the dearth of infrastructure, especially roads, electricity and security has crippled operations.

Providing a scorecard of the chamber and projections for the year ahead, President of ACCI, Emeka Obegolu, called for immediate actions that would power supply and infrastructure development to unlock the potential of Nigeria’s industrial hubs.

He noted that the current administration wrongly managed subsidy removal and foreign exchange (FX), stressing that the approach is out of place in an import-dependent economy.

He insisted that with the naira in free fall and manufacturers struggling to sustain production, there is a need for the CBN to intervene in import substitution and backward integration areas.

Obegolu stressed the importance of addressing critical challenges facing businesses, including unreliable electricity, poor infrastructure and insecurity, which have crippled industrial productivity.

“Power and infrastructure are the bedrock of industrial development. Increased tariffs and the attraction of private investors into the power sector should naturally lead to improved supply. However, industrial districts require more than just power – they need comprehensive infrastructure, including security and water, to attract and sustain businesses,” he said. Obegolu decried the plight of many businesses within the chamber, particularly importers, who have been hit hard by unstable currency policies.

According to him, the decision to float the naira without a robust production base was a significant mistake, exposing the economy to inflation and instability.

“No economy can successfully float its currency without substantial export capacity. Our over-reliance on imports for over 90 per cent of what we consume is unsustainable. Everything, from eyeglasses to clothing, is imported. Until we boost local production, inflation and economic instability will persist,” he explained.

Obegolu emphasised the need for policies that actively support local manufacturers.

He called on ministries, departments and agencies (MDAs) and individuals to reduce reliance on imports and commit to supporting domestic industries.

On the issue of cash flow, Obegolu noted that while cashless policies have merit, restricting cash availability stifles businesses that rely on cash transactions.

He urged policymakers to ensure cash remains accessible to support commerce.

Looking ahead to 2025, Obegolu called for a strategic focus on productivity and import substitution.

He pointed to Nigeria’s growing population, which is estimated at five million yearly and the need to match this growth with investments in agriculture, logistics, transportation and market access to drive food security and job creation.