SEC Seeks Harmonized Exchange Rate to Attract Foreign Portfolio Investment

The Securities and Exchange Commission, SEC has advocated for a unified foreign exchange rate in order to attract Foreign Portfolio Investment, FPI into the country.

The Commission said that the Central Bank of Nigeria (CBN) needs to harmonise exchange rates to boost FPI which has been on the downside for over two years.

Speaking during Nairametrics Economic Outlook webinar themed: “Resetting Nigeria’s economic growth trajectory’’, SEC’s Executive Commissioner, Operations, Dayo Obisan, said: More foreign capital would be attracted to the economy when the exchange rates are harmonised.”

The panelists include Partner fiscal policy and Africa tax leader, PwC, Taiwo Oyedele; Chizor Malize, Managing Director/CEO FITC, and Johnson Chukwu, Managing Director/CEO Cowry Asset Management Ltd/Chairman, Fidelity Pension.

Obisan said he was confident that the apex bank was working towards achieving a unified exchange rate policy.

Obisan, who was represented by Lamido Yuguda, the Director-General of the SEC, called for the floating of the naira and allowing the forces of demand and supply to determine the exchange rate for the naira.

According to him, the implementation of the National Development Plan would help to achieve economic growth in the country.

He said: “The task before the authorities is the proper implementation of the National Development Plan. We should work very hard towards import substitution. There should be sustainable productivity to give the country a leap in its quest for economic growth”

The SEC’s Commissioner said: “Productivity would alleviate poverty in Nigeria, adding that a lot of policies have been put up, but the issue usually is the implementation of those policies.”

On his part, Oyedele said: “Taxing the poor not in the interest of the economy. The best practice was to empower the poor and small businesses to be in a position where they will pay their taxes. Government should explore an inclusive economic growth rate that will focus on taxes, reduce the economic burden on SMEs, and increase the tax net of non-paying upper middle-class institutions, especially the MDAs.

“What we need to do is make the country work for the rich and poor. Almost 100 million people are living in poverty.”

In his own part, Chukwu called for more investments in agriculture and industrialization that there is no economy in the world today that has become industrialised based on agriculture because agriculture is basically an extractive industry and can never be the engine of economic growth.