The Institute of Chartered Accountants of Nigeria queried the rationale behind obtaining loan through NNPCL when we have the CBN.
In a bid to entrench transparency and accountability, the Institute of Chartered Accountants of Nigeria is expressing displeasure with a recent development in Nigeria.
It says transparency and accountability are virtues known to be absent in most government agencies.
Their absence is the reason corruption and impunity are on the increase in different government parastatals.
It is in view of this that the Institute of Chartered Accountants of Nigeria has called on government to put matters in perspective.
ICAN is saying it could not help but disclose the extent of unpaid foreign exchange bills and outstanding debt obligations.
The 59th ICAN President, Innocent Okwuosa, said Nigerians needed to know if the $3billion crude oil repayment loan would have any impact on the foreign exchange rate.
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ICAN President Raised Germaine Issues
In his recommendation paper entitled: “The NNPCL $3billion Afrexim Bank Loan, Naira Exchange Rate and Fuel Subsidy: Our Position”.
Okwuosa, said ICAN was ready to offer its support to the government in the effort to address the economic challenges and move Nigeria forward.
He advised the government to imbibe comprehensive economic reforms, improve governance, and make concerted efforts to diversify the economy.
The devaluation of currency should be the last resort to the economic imbalance.
He said that accountability and transparency demand that the cost of refining a litre of fuel should be disclosed to Nigerians.
Okwuosa, wondered why NNPC was the channel for obtaining the $3 billion loan rather than the CBN.
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Gave Recommendations To Government
On the medium-to-long term recommendation for FX demand side, ICAN advised the government to:
- Tackle inflation and reduce currency substitution on account of low purchasing power of the Naira;
- Promote patronage of made in Nigeria goods using enabling laws;
- Improve the standard of education and health facilities in Nigeria to reduce education and medical tourism;
- Encourage companies operating in Nigeria to source raw materials locally via backward integration;
- Fix the refineries to reduce import of petroleum products with attendant reduction in FX pressure; among others.
On the supply side, it wants the government to:
- Diversify the export base especially through agriculture and solid minerals;
- Set up a Fiscal and Monetary policies Coordinating Committee that will do the following –
- Ensure goal congruency and stability in policies that address macroeconomic indices;
- Enhance Ease of Doing Business, tackle corruption and insecurity to make way for increased FDIs;
- Recapitalize NEXIM to be in a stronger position to incentivize exports; among others,” Okwuosa said.
Also, it was suggested that the implementation of non-critical dollar-denominated components of 2023 budget be postponed until FX situation improves.
