Dwindling Economy: ECCIMA Identifies Key Reasons For Continuous Naira Depreciation

Posted by Ignatius Okpara Business News, Featured, Latest Headlines Sunday, November 10th, 2024

(AFRICAN EXAMINER) – The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has identified high level of importation of finished products into Nigeria as the key reason for the continuous depreciation of the naira, even as it threw its weight behind the Dangote Refinery.

It said the organization is committed towards supporting the growth of the Nation’s economy via local production, adding that she has been “closely watching and monitoring events surrounding the Nigeria economy in recent times”.

The Chamber however, also attributes the continuous depreciation of Naira to the low local production capacity of the country.

President of ECCIMA, Sir Odeiga Jideonwo, stated this in a statement he personally signed and made available to newsmen Friday in Enugu through the Director General of the group, Mr. Uchechukwu Mbah,

He noted that “the high level of importation of finished goods remains the major reason for the continuous decline of Naira especially when we continue to import products that can be sourced or produced locally.

“Our recent study of China reveals that the economic growth being experienced in China presently is a function of a strict policy of the Government to support locally based or indigenous companies to produce for 100 percent local consumption as well as for export.

“With their local consumption demand being satisfied by goods produced locally, they have settled, to a large extent, the major economic issues of exchange rate.

“Interestingly, stepping it up to manufacturing various products for export, helps China build its foreign reserves which as at September, 2024 were $3.3 billion.

“This is more than twice the size of Japan’s reserves. This feat by China remains the result of the decisive policies of the Government and the good people of China.

“The Dangote Petroleum Refinery is currently one of Nigeria’s gift that needs to be encouraged at this time when the economy of Nigeria is declining.

According to the ECCIMA boss, “Since Oil is currently the major source of foreign earnings for Nigeria, players in the industry that have shown capacity in moving the country from net exporter of crude oil to also exporter of refined petroleum products, should be encouraged by the Government and indeed all stakeholders.

“Dangote Petroleum Refinery is a timely private sector initiative whose impact on the economy would not be underrated. ECCIMA believes that the byproducts of this refinery, which has the capacity to refine 650,000 barrels per day and has increased production from 25 million litres to 30 million litres in October, 2024, will be ancillary to other indigenous companies and this will indeed foster economic growth.

“It is obvious that the growth of Dangote Petroleum Refinery is necessary, as it remains the core, for the needed diversification of our economy.

“Every other sector will definitely need the byproducts of this refinery. Nigeria foreign earnings will also grow if Dangote Refined Petroleum products are exposed and accepted in the international market.

“With these therefore, ECCIMA calls on the Government and all Stakeholders to rally round and support the Dangote Petroleum Refinery as well as other local manufacturers and industries for the growth of the national economy.”