President of the Abuja Chamber of Commerce and Industry (ACCI), Mr Emeka Obegolu, has stated that illicit financial transactions are the bane of Nigeria’s economy.
He made the assertion on Thursday in an interview with the News Agency of Nigeria (NAN).
According to him, these illicit financial transactions also put pressure on the naira, leading to its undervaluation and concomitant national challenge.
Obegolu urged the federal government to curb illicit financial flows by combating corruption within the financial system speedily.“
“I am convinced that the naira is undervalued with its true value estimated to be between 800 and 1,000 naira to the dollar.
“The undue strain on the naira is predominantly fuelled by corrupt practices, rather than by legitimate business activities. Thus, addressing corruption is paramount,’’ Obegolu told NAN.
The ACCI president said it was necessary for government to implement measures to boost citizens’ purchasing power an also advised government to avoid imposing arbitrary taxes and high exchange rates on imported goods.
According to him, importers inflate prices because of high costs associated with clearing their goods at the ports.
Obegolu emphasised that governance should not solely prioritise revenue generation, but should also focus on ensuring citizens’ welfare.
While recommending that the government shifts its approach, he advocated for support to be extended to local businesses.
He said this would enhance competition and encourage local production of goods currently being imported at comparable rates.
“There is no valid reason for a shoe imported from China to be cheaper than the one produced in Aba, Abia. However, the pricing disparity persists today.
“It indicates that the Chinese have harnessed technology to reduce production costs. Therefore, the Nigerian government needs to invest in technology to bolster local enterprises,” he added.
The ACCI president also advocated support for government’s removal of fuel subsidy and called for an end to what he called baseless accusations against banks’ chief executive officers.
He charged the Economic and Financial Crimes Commission to present concrete evidence on how banks’ chief executive officers hoarded dollars while declaring profits.
Obegolu also urged government to eradicate all avenues of financial malpractice and penalise offenders identified by relevant authorities.