The Labour Party's presidential candidate, Peter Obi, has endorsed a World Bank report arguing that Nigeria should ease import and foreign exchange restrictions.
Obi stated that if elected, he will ensure that Nigeria adopts a single forex window rather than the multiple forex windows that are currently in place.
Importers and exporters alike are expected to breathe a sigh of relief as restrictions on imports and foreign exchange are expected to be lifted.
A World Bank report earlier this year revealed that these restrictions play a significant role in food inflation in the country, stating that the strength of the Naira has significantly declined in parallel market.
This combined with the embargo on the availability of foreign exchange to importers on over forty products and a slash on the funds available to other importers has led to the country experiencing the highest level of inflation in four years.
Obi said, “We will remove import and forex restrictions and insist on a single forex market. The current system penalizes exporters who bring in forex by forcing them to sell at a rate that they are unable to source for forex when they need to purchase forex.
”This multiple exchange rate regime encourages capital flight and deters investment, which has further worsened Nigerian’s forex situation.”