The Lagos Chamber of Commerce and Industry has recommended that the government should implement measures to stabilise and ensure the availability of foreign exchange for businesses.
LCCI in its recommendation, is particular about companies operating in dollar-denominated environments.
The Chamber, in a press statement signed by its Director General, Dr Chinyere Almona, implored the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.
Almona was speaking against the background of the Chief Financial Officer of Procter & Gamble, Andre Schulten, who has indicated that P&G plans to advance its Nigerian operations to an “import-only model”, effectively dissolving its on-ground presence in the country.
The company had cited challenges in conducting business as a dollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria.
It has a portfolio valued at $85 billion with Nigeria contributing $50 million in net sales.
Following this, the Chamber urged the government to engage multinational corporations and the business community to understand their challenges, gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria.
LCCI tasked the Central Bank of Nigeria to prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability.
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LCCI hinted: “Over the last few months, there has been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by the multinationals, and this trend is worrisome. We have seen the likes of Unilever Nigeria, GlaxoSmithKline, and Guinness Nigeria Plc.
“In Nigeria, lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, have taken a toll on many businesses in the country”.