Currency swap deal: CBN must tread with caution-CSAN President
.Calls on FG to revamp manufacturing sector for greater growth
By Udeme Clement
The National President, Constance Shareholders Association of Nigeria, CSAN, Mr. Shehu Mallam Mikail,
Has called on the Central Bank of Nigeria, CBN, to carefully re-examine the currency swap agreement entered into with China, in order to prevent Nigeria from becoming a dumping ground for sub-standard goods from China.
He made this known in a chat with Financial Business in Lagos.
The CSAN President warned that if not properly handled, the economic implications could outweigh the benefits, as such business agreement may pave the way for influx of sub-standard imports from China to Nigeria.
He said, “There are more concerns about the currency swap deal between Nigeria and China, because Nigeria is a mono-cultural economy, depending largely on revenue from crude oil to run the entire economy. China on the other hand is among the fastest growing economies, with a target to dominate the world economy with its products”.
He added, “The Apex Bank needs to approach the currency swap agreement holistically, such that the interest of Nigeria’s economy could be well protected”.
He went on, “Nigeria should be more involved in viable production process than simply depending on importation of finished products from China.
“Moreover, this currency swap deal needs more careful study because the system may likely favour some policy makers than Nigeria’s economy itself.
“As such, the Federal Government needs to put necessary infrastructure in place to revamp the manufacturing sector for Nigeria’s economy to thrive and create jobs for the citizens, instead of encouraging excessive importation to the detriment of local manufacturing industries in the country”.