Minimise Importation through Deliberate Policies to Reduce Pressure on Foreign Reserve, ICAN President Tells FG

Ugo Aliogo

The National President, Institute of Chartered Accountants of Nigeria (ICAN), Mrs. Comfort Eyitayo, has advised the federal government to minimise importation of goods and services in order to reduce the pressure on the foreign reserve through deliberate policies.

Eyitayo, who disclosed this in Lagos during the Investiture of the 8th District Chairman; Inauguration of Executive Members and N20 million fundraising for the building of District’s Secretariat, commended the federal government’s drive in tackling the rising inflation, and appealed for increased commitment.

She stated that the penchant for imported goods and services were also affecting the economy because the government spends more revenue importing foreign goods that put pressure on the foreign exchange.

“In a situation where you have the resources dwindling, and we are not controlling our cost it is a twin evil because for you to get more enhancements and reduce inflation, you must improve in terms of economic development. But that is difficult to achieve when the cost is rising everyday due to fewer goods which could also be linked to insecurity because farmers are not able to go to farm and produce, or those that are able to produce small cannot come to the market,” she noted.

Eyitayo advised the government to encourage the Small Medium Enterprises (SMEs) especially by providing the enabling business environment for SMEs to strive.

In his acceptance speech, the new Chairman of ICAN Ikorodu, Mr. Olusola Akinloye, hinted that all efforts would be channeled towards the construction of the proposed permanent secretariat on a piece of land directly opposite the Oriwu Club on Sagamu road.
He also stated that the new Excos was committed to improving the district’s visibility through its website, adding that plans have been finalised with an IT firm to install a strong web for ease of accessibility and payment by members.

According to Eyitayo, “It is well established that the SMEs are the engine of growth in any economy. But most SMEs don’t have access to sufficient capital to inject into the business, and when they have capital to drive the business, they lack other indices to support the business. I know the efforts on the ease of doing business which is ongoing, but it has to be further strengthened. Small businesses complain of multiple taxations which is overwhelming, and for businesses to strive, it must be profitable. If SMEs have an enabling business environment, they will be able to bring down the cost of production and consequently reduce price. But if the enabling business environment is tough, then the reverse will be the case for SME businesses.

“You can borrow in the short term. There are borrowings that are targeted at development, but when you borrow to finance frivolities, you are deepening your debt profile. The issue with the economy is not the borrowing actually, but what it is meant for. If the borrowing is channel towards productivity and development, then it will regenerate itself.”