Amid mounting economic difficulties attributed to soaring food inflation and the depreciation of the naira, Emeka Obegolu, President of the Abuja Chamber of Commerce and Industry (ACCI), has urged the government to take action against illicit naira transactions.
Obegolu stated this in an interview with journalists at the ACCI headquarters in Abuja.
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He said the move will address the current economic crisis and the sharp decline of the naira in the foreign exchange market.
He emphasized that the pressure on the naira predominantly results from illicit financial activities rather than legitimate business transactions, underscoring the urgent need to combat corruption within the system.
“The core issue lies in illicit naira transactions for dollars. The government must tackle this illicit practice head-on. I am convinced that the naira is undervalued, with its true value estimated to be between 800 and 1,000 naira. The undue strain on the naira is predominantly fueled by corrupt practices rather than legitimate business activities. Thus, addressing corruption is paramount,” Obegolu stated.
In addressing the issue of food inflation, the ACCI President underscored the necessity for the government to implement measures aimed at boosting citizens’ purchasing power and avoid imposing arbitrary taxes and high exchange rates on imported goods.
He stressed that importers inflate prices due to the high costs associated with clearing their goods. Obegole advised that governance should not solely prioritize revenue generation but should also focus on ensuring citizens’ satisfaction.
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He recommended a shift in approach for the government, advocating for support to be extended to local businesses to enhance competitiveness and encourage local production of goods currently being imported at comparable rates.
