Traders Decry Forex Policies Impacting Transborder Commerce

We Still Sell Forex, BDCs Assure Nigerians
We Still Sell Forex, BDCs Assure Nigerians

The Transborder Traders Association has raised concerns over the adverse effects of the Central Bank of Nigeria’s foreign exchange policies on intra-African trade, highlighting challenges faced by traders in repatriating earnings.

Nasiru Salami, the president of the association, expressed dismay over regulations hindering cross-border trade within Nigeria.

Salami pointed out the requirement for traders to repatriate export proceeds, citing difficulties faced by small and medium enterprises (SMEs) in complying with these regulations. He emphasized the impracticality of expecting traders, particularly those dealing in commodities like gold, to navigate the complexities of repatriating earnings, especially for individual buyers.

Highlighting the burden placed on traders to conduct transactions through formal banking channels, Salami underscored the challenges faced by traders in accessing foreign exchange for repatriation, particularly given the unique dynamics of cross-border commerce.

He called for greater organization and harmonization of policies across African countries, noting disparities in enforcement within the Economic Community of West African States (ECOWAS). Salami stressed that while Nigeria enforces such regulations rigorously, other ECOWAS countries do not impose similar requirements.

Regarding the impact of exchange rate fluctuations on transborder trade, Salami advocated for a wait-and-see approach, anticipating the repercussions of recent adjustments in the dollar-naira exchange rate.

Salami also shed light on the significant trade relationship between Nigeria and Niger Republic, particularly in the livestock sector. Despite the ban on imported poultry products, he revealed that a substantial portion of livestock imported into Nigeria originates from Niger Republic. This trade, he explained, operates primarily on a trade-by-barter basis, with Nigeria reciprocating by supplying agricultural products and manufactured goods.

The remarks by the Transborder Traders Association underscore the complex challenges faced by traders operating across Nigeria’s borders and the urgent need for policy adjustments to facilitate seamless cross-border commerce and promote regional trade integratio

Leave a Reply