CBN’s new policy on payment could disrupt SMEs activities – LCCI

The Central Bank of Nigeria’s (CBN) recent policy introduced to remove third parties from accessing its SMIS forex window through FORM M forex purchases is allegedly expected to translate to disruption of the supply chain of the business community.

This was disclosed by the Director-General of Lagos Chambers for Commerce and Industry, Dr Muda Yussuf, during an interview on TVC recently. According to him, the implementation of the policy would translate to the disruption and dislocation of over 80% supply chain of the business community.

He explained that the development would create more problems than it would solve, as activities of small business owners trading in the domestic economy would be severely affected.

He said; “Small businesses don’t have the capacity to connect with the original producers of these things, because these intermediaries play the role of aggregating the demand of these small businesses, and then they go on to buy in bulk from original supplies and producers as the CBN called them and then sell in smaller portions to the SMEs.”