The Nigeria Employers’ Consultative Association (NECA) has lamented that the adjustment of naira exchange rate by the Central Bank of Nigeria from N360/dollar to N380/dollar at the Secondary Market Intervention Sales (SMIS) will worsen inflation in the country.
The association made this known in a statement issued at the week end by its Director-General, Dr Timothy Olawale.
“We believe this (the rate adjustment) will be counterproductive, as the nation depends hugely on importation of raw materials, equipment, fuels (most especially). We are sure this will imply higher cost of all imported products, with increased potential for reintroduction of subsidy regime,” he said.
Olawale added: “Though the announcement is a welcome development, the timing, however, left much to be desired” noting that “One of the challenges we observed in the management of the economy by the fiscal and monetary policy makers has been misalignment and improper timing of the policies.”