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41 Exempted Items: FG Dumps CBN’s Forex Policy - Business - Nairaland

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CBN New Forex Policy Fails To Excite Foreign Investors / Benefits Of CBN's New FOREX Policy / Unpatriotic Persons Pushing For Forex Policy Reversal—cbn (2) (3) (4)

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41 Exempted Items: FG Dumps CBN’s Forex Policy by jonili(m): 7:12am On Dec 11, 2016
Emma Ujah, Abuja Bureau Chief THE Federal Government is set to abolish the policy of the Central Bank of Nigeria, CBN, regarding the 41 items exempted from foreign exchange market in its newly released 2017 Fiscal Policy Roadmap The policy document prepared by the Minister of Finance, Mrs. Kemi Adeosun, will, instead, come up with fiscal measures to reduce pressure in the parallel market.

According to the document, the FG “will replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market.” Presenting the document at the session, which was attended by captains of industry across key sectors of the economy, including oil, banking and telecoms, Mrs. Adeosun said “The Federal Government’s Fiscal Roadmap is addressing barriers to growth that will drive productivity, generate jobs and broaden wealth-creating opportunities to achieve inclusive growth”.

She stated that the President Muhammadu Buhari administration was determined to return Nigeria to a productive economy rather than one steeped in consumption. To do so, government would tackle the infrastructure deficit to unlock productivity, improve business competitiveness and create employment. She further said that government would actively partner with the private sector to achieve this by use of a number of new funding platforms, including the Road Trust Fund, which would develop potentially tollable roads, and the Family Homes Fund, which is an ongoing PPP initiative for funding of affordable housing.


According to the minister, the tax provision that allows companies to receive tax relief for investment in roads on a collective basis would be reviewed. She explained that the existing provision that enabled companies to claim relief for road projects had only been taken advantage of by two companies, Lafarge and Dangote Cement. This was because few companies were large enough to fund roads alone.

The revision would now allow collective tax relief, such that companies will be able to jointly fund roads, subject to approval by FIRS and the Ministry of Works, and share the tax credit. It added that the government would revitalise refineries and increase Diaspora remittances through participation in the buyer support scheme for the Family Homes Fund with a view to increasing the supply of US Dollars to the Nigerian market. The Roadmap also provides for a fresh audit of the federal government debt profile after which it would introduce a promissory note program to finance verified liabilities and issue debt certificates to contractors of Ministries, Departments and Agencies (MDAs).

These, according to the document, would positively impact on the economy by improving government’s cash flow of businesses, improve banks’ Non-Performing Loans, (NPLs); free up banks’ balance sheet for lending to private sector; and improve business interaction. These liabilities were estimated to be N2.2 Trillion and would be addressed with a 10 year Promissory Note Issuance programme in conjunction with the CBN. “Some contractors had not been paid in the past 4 years and in some cases the banks they were owing refused them access to the funds released, causing delays,” she explained, adding that those receiving the Promissory Notes would be expected to provide a material discount to government. The issuance was a solution to a long term problem that was ‘a drag on economic activity’.

It would also mobilise private capital to complement government spending on infrastructure, through the Roads Trust Fund, Family Homes Fund, while extending infrastructure tax relief to a collective model to attract clusters of corporate entities and expand the provision of infrastructure, in other to drive growth of non-oil sector, especially and the economy in general. There would be incentives for exports which would include restructuring the Export Expansion Grant (EEG) to a tax credit system, as well as rationalised tariffs and waivers in key export sectors. These have been designed to drive import substitution. The document indicated that the federal government would encourage investment in specific sectors through fiscal incentives especially in food processing, mining and power, and would rationalise tariffs and waivers in such priority sectors. In order to expand fiscal space through revenue enhancement and cost consolidation, it would enhance the Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme), introduce template for non-allowable expenses for government agencies, control overhead costs by the Efficiency Unit and implement a continuous risk based audit by the Presidential Initiative on Continuous Audit.

In order to improve fiscal discipline at Sub-National level, the federal government would, from next year, extend the Efficiency Unit to Sub-National level; fast track municipal bond issues to deepen the bond market, as well as conversion to International Public Sector Accounting Standards by all state governments. The government plans to pursue its anti-corruption crusade in the new year with greater vigour and accelerate recoveries process, introduce a whistle-blower scheme, centralised database on recovered assets, asset tracing and a professional management of recovered assets. It also plans to rebalance debt portfolio to extend maturity and optimise debt service cost through rebalancing public debt portfolio with increased external borrowing with a target of 60:40 ratio and extend maturity profile of public debt portfolio, while deploying long-term debt instruments and depending more on concessionary loans.

http://www.vanguardngr.com/2016/12/41-exempted-items-fg-dumps-cbns-forex-policy/

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Nobody: 7:16am On Dec 11, 2016
FTC back to Back...




Let the intelligent ones downstairs comment.

40 Likes 1 Share

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by sholatech(m): 7:47am On Dec 11, 2016
At least we will now have a firm fiscal response from the finance ministry on our recessed economy. For long it has been only monetary attempts from CBN. And Pseudo-Economics suicide from DSS/EFCC.

We await the pallatives and action plan from Mrs Adeosun. Till then, we view her as Clueless

69 Likes 5 Shares

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by veekid(m): 8:11am On Dec 11, 2016
Buhari sef
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by sayyid(m): 8:11am On Dec 11, 2016
when you try a particular method and it's not working the next thing is to try another method.
We will get it right one day I am optimistic about that, it's only a matter of time

13 Likes 1 Share

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Eibams60(m): 8:12am On Dec 11, 2016
kk
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by hotspec(m): 8:12am On Dec 11, 2016
A disastrous combination is when u have an incompetent AFONJA-Kemi, heading an economy team with an unstable IPOD-Emefuele as d CB governor for a clueless and directionless kunnu-sipping SHEPHERD from Sahara desert BUBU rulling a zoo.

74 Likes 3 Shares

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by bigFOOTcaveMAN(m): 8:12am On Dec 11, 2016
angry
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Nobody: 8:13am On Dec 11, 2016
Back and front government.
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by zanebaddo(m): 8:13am On Dec 11, 2016
.
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by deflover(m): 8:14am On Dec 11, 2016
all this about to we will policies
get to work beauty queen
are you still giving buhari a head
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Teewhy2: 8:14am On Dec 11, 2016
I hope this will not be reversed again in the next 5 months, the major problem with our economy is back and forth policy. No company will want to put his money in an economy that he is not sure of the policy in the next 1 year.
I think it is time for the presidency to review his cabinet as it is more than a year that they have been appointed why some have not been performing well but kept in the position because of their political influence.
I think the way to develop the economy is government supporting small scale business, 60% of Nigeria population is within the working age bracket and are very industrious and creative if the government can support the small scale business by providing low interest loan , with good infrastructure in place and good long term policy. Nigeria will be a great place for foreign investors in the next couple of years

4 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by awa(m): 8:14am On Dec 11, 2016
FG and confusion
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Atiku2019: 8:14am On Dec 11, 2016
Confused Government grin grin grin
Don't initiate policies you can't maintain on a short/long-run tongue

20 Likes 1 Share

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Omeokachie: 8:14am On Dec 11, 2016
Kalo-kalo monetary policy.
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by CoolFreeday(m): 8:14am On Dec 11, 2016
Good development
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Nobody: 8:16am On Dec 11, 2016
BUHARI SACK EMEFIELE AND WATCH YOUR FORTUNES CHANGE

7 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by datopaper(m): 8:16am On Dec 11, 2016
The Government should stop saying "we want to do this, or that. DO IT, and make Nigeria great again

2 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Momoney77: 8:16am On Dec 11, 2016
This one na very big lie, sia Baba will never go unpunished!!! cry

11 Likes 2 Shares

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by olu77(m): 8:17am On Dec 11, 2016
It's called trial by error.
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by ZACHIE: 8:18am On Dec 11, 2016
Sound bites

Dancing in circles

Get serious pls

1 Like

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by sammyj: 8:19am On Dec 11, 2016
That CBN governor is just a business man who is fighting for the interest of his cronies. This government must sack that emefiele if they like themselves. sad #SackEmefiele

8 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by legendte(m): 8:19am On Dec 11, 2016
Drama Queen
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by lonelydora: 8:19am On Dec 11, 2016
Emefiele, Kemi, Dalung, and Lai Mohammed should be sacked with immediate effect

3 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by KINGwax007(m): 8:20am On Dec 11, 2016
Many will come and talk rubbish... Toddlers!!

1 Like

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by zaimeg: 8:22am On Dec 11, 2016
AnonyNymous:
BUHARI SACK EMEFIELE AND WATCH YOUR FORTUNES CHANGE
Buhari is actually one of the problems of Nigeria now. He needs to allow his appointees work. The confidence in the government currently is at the lowest ebb now. Sack Buhari and watch the economy improve. That said, we need strong institutions and not strong men.

7 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Chiefpriest1(m): 8:22am On Dec 11, 2016
Confusion...

Not sure there was anything specific about dumping the 41 items. Maybe I didn't see it. I guess the writer is just implying ...

1 Like

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Clone2020(m): 8:22am On Dec 11, 2016
If you want to send money to relatives in Nigeria, I will buy your dollars at the rate of 410/$ while you deposit into my US bank account. Dont even bother with western union and co, they exchange for far less plus fees and delays.

See contact in signature.
Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by talktimi(m): 8:22am On Dec 11, 2016
Inconsistent and inept bloodthirsty rogues in power cool

2 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by chigoizie7(m): 8:22am On Dec 11, 2016
Is that so?


So, for the past 20months,all this govt is concerned with is trial and error?

To even think that some imbecilic Nairalanders has been defending their useless policies all these while.


I don't have a problem with the initial bans.

My problem with them is their instability in policy making.

This their policy and counter policy is doing more damages than repairs.

How do u explain to investors that ur policy ain't stable? Even on a short run? How do u boost their confidence in u? That their businesses are safe within some specific period of time? That u will not make a policy that will entice them into investing but will turn around to change it after putting their money down? (fraud).

How could u move this nation forward if u can't diversify the economy? Oil ain't paying. The next move is manufacturing and agriculture, but how could u do that with useless policy, policies that are not investors friendly?

Make a policy and stand by it. If u are not sure of what u are doing, then don't make it @ all.


Nigeria is too big to be run by trial and error imbec!les.

2 Likes

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by Hanendez(m): 8:23am On Dec 11, 2016
I guarantee y'all that by the time the week is over, the CBN will come up a statement denying this report. Remember the rice importation through the land borders ban lift? This administration is arguably the most directionless and clueless there ever has been.

3 Likes 1 Share

Re: 41 Exempted Items: FG Dumps CBN’s Forex Policy by nastyesco(m): 8:23am On Dec 11, 2016
We are tired of all these plenty grammar....we need efforts that will be felt by the simple man on the streets not all these Economics PhD Research mumbo jumbo..To simply state how unserious this Govt is
" It added that the government would revitalise refineries and INCREASE DIASPORA REMITANCES through participation in the buyer support scheme for the Family Homes Fund with a view to increasing the supply of US Dollars to the Nigerian market. "
Abeg which serious Govt plans to revitalise it's economy based on such rubbish highlighted in capital?

6 Likes 1 Share

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