The Lagos Chamber of Commerce and Industry has called for the review of the Central Bank of Nigeria’s circular, which directed that Form M for Letters of Credit, Bills for Collection and other forms of payment should only be opened in favour of the ultimate supplier of a product or service.
“What this means is that the supply chain of over 80 per cent of the business community has once again been disrupted and dislocated. This is like substituting the global supply chain problem with a domestic supply chain disruption,” Yusuf said. He noted that it would be impractical to expect all importers of raw materials, equipment, and other inputs to buy directly from the ultimate producer, manufacturer or supplier, especially in an economy driven by Small and Medium Enterprises as being demanded by the CBN’s circular.
The LCCI ascribed the goings on in the foreign exchange market to the symptoms of policy shortcomings in the management of Nigeria’s foreign exchange market.