The Lagos Chamber of Commerce and Industry has faulted the allocation of 60 per cent foreign exchange to the manufacturing sector, describing it as one of the policy inconsistencies of the government making it difficult to regain the confidence of investors.
The chamber stated this in a statement on Sunday, which was signed by its Director-General, Mr. Muda Yusuf. It said, “Another policy development that could pose a risk to the stability and transparency of the foreign exchange market is the recent policy on sectoral allocation of foreign exchange.
The CBN circular did not indicate any HS Code to properly define what would qualify as raw materials and machinery. “The first concern will be that of definition. The result of this will be discretionary interpretation by the banks as what qualifies as raw materials and machinery. The second major concern is the potential crowding out of other sectors in the forex market.