NECA, Maritime Expert Warn On Implication Of CBN’s Directive On Form ‘M’

By Dili Utomi

The Nigeria Employers’ Consultative Association (NECA) has said that the Central Bank of Nigeria’s recent policy on Form ‘M’ would negatively impact the economy, calling for immediate audience with the apex bank.

The employers’ body, in a letter addressed to the CBN governor, Mr. Godwin Emefiele, said it wants an audience with the CBN office to further engage on the matter, in the interest of finding a solution that would not negatively affesct businesses or the economy. Director-general of NECA, Dr. Timothy Olawale, who signed the letter, however, commended the Federal Government on its various policies aimed at ensuring the growth and development of the Nigerian economy.

He said it was imperative to note the downside of the policy, which had the potential to frustrate the ongoing efforts of government to return the economy to growth, create jobs and prevent economic downturn already worsened by the COVID-19 pandemic. “The exclusion of procurement companies from Form ‘M’ will cause significant business disruption for many manufacturing companies because of existing medium to long-term contractual obligations with centralised procurement agencies. Dismantling such arrangements and contracts would not only result in losses for these companies in Nigeria, but would also disrupt production schedules, which are planned long in advance.

Also speaking on the removal of third party from various forms of payment while importing and clearing of goods into the country, Vice President of the Association of Nigerian Licensed Customs Agents, Dr. Kayode Farinto said that the policy   will exacerbate the problem that the CBN is trying to solve, create a gulf along the supply chain and ultimately leave the dealers in the lurch.