• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Nigeria’s forex policy is “suicidal”, stockbrokers warn

1 year ago
in Business, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
82
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s forex policy is “suicidal”, stockbrokers warn

The Chartered Institute of Stockbrokers (CIS) has expressed concerns about the impact of recent foreign exchange reforms on companies with significant foreign exchange components, noting that many of these companies are posting losses or substantially reduced profits.

This statement was made by the CIS President and Chairman of the Council, Mr. Oluropo Dada, at the 2024 Vanguard Economic Discourse, themed ‘Reforms in an Era of Global Uncertainties: Whither Nigeria’.

Dada, represented by Council Member Mr. Adeyemi Aina, highlighted the challenges faced by businesses such as Nestle and MTN, which have been adversely affected by the forex reforms.

He emphasized that the government should take these concerns seriously as they reflect broader economic vulnerabilities.

“While these reforms are aimed at accelerating economic growth, they come with initial challenges due to the existing deterioration in the economic structures,” he said.

Dada reiterated the CIS’s support for the overall policy direction of the government but suggested that the implementation could be improved.

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

He pointed out that no country operates a completely free-floating currency system; instead, advanced economies use a managed float system to protect their national currencies from market volatility.

“No country operates with a completely free-floating currency. Democratic nations typically employ a managed currency management system to prevent economic instability.

“The reality is that it is suicidal for any country to expose its natural currency entirely to the forces of demand and supply,” he stated.

He expressed concern over the impact of foreign exchange losses on the profitability of quoted companies and urged for proactive measures to mitigate these effects.

He noted that the financial results of companies like Nestle and MTN are indicative of the broader impact.

He noted that the institute has set expectations for major corporations, such as Dangote Group, the Nigerian National Petroleum Corporation (NNPC), and electricity distribution companies, to be listed on the exchange by the end of 2024. This move is anticipated to boost market activity and investor confidence.

The President highlighted the importance of significantly increasing the aggregate volume and rate of production in the economy as a sustainable method to strengthen the national currency, the naira.

“A sustainable way to strengthen our national currency is to produce what we consume domestically and reduce importation,” he said.

He called on the government and all economic stakeholders to work towards achieving a significant increase in local production.

He also advocated for multinational companies like Toyota and General Motors to establish production lines in Nigeria, which would facilitate the local manufacturing of car tires, batteries, engine oil, and other automotive parts.

However, he cautioned the federal government to reconsider the increase in Band A electricity tariffs, as this would likely raise production costs and make locally produced goods less competitive compared to imports.

Source: nairametrics
Via: norvanreports
Tags: Nigeria’s forex policy is “suicidal”stockbrokers warn
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.