BUA Chairman Says FX Policy Reform Ends Dollar Lobbying Pressure

The Chairman of BUA Group, Abdul Samad Rabiu, has said that the recent foreign exchange (FX) reforms introduced in Nigeria have brought an end to the long-standing practice of businesses lobbying the Central Bank of Nigeria (CBN) for access to dollars. Speaking in a recent interview, Rabiu applauded the federal government’s move to unify the FX system, noting that it has created a more equitable environment for all players in the economy, especially the private sector.

According to Rabiu, the reforms represent one of the most significant steps in addressing the inefficiencies that have long plagued Nigeria’s foreign exchange regime. Before the changes, companies had to depend on connections or lobbying efforts to access foreign currency at the official rate. This, he said, put smaller or less-connected businesses at a disadvantage and created an uneven playing field across sectors.

The unification of the multiple exchange rates has removed a system where some companies accessed FX at subsidized rates while others paid significantly more in the black market. Rabiu stated that this disparity encouraged rent-seeking behavior, discouraged investment, and made it difficult for businesses to plan or operate transparently.

Reflecting on past challenges, he said that business executives spent an overwhelming portion of their time lobbying officials to secure FX from the CBN. “At one point, 90 percent of the time was used in trying to get dollars. This was not only frustrating but also counterproductive to business operations,” he said. He added that the FX access system before the reform bred inefficiency and corruption, and only favored the few who had influence.

Rabiu acknowledged that the transition to a unified FX system has not been without short-term pain. The naira has seen significant fluctuations, with the exchange rate hitting new lows before gradually stabilizing. Despite the volatility, he maintained that the reform was a necessary move that would benefit the Nigerian economy in the long run. He also emphasized that businesses are now better positioned to plan their financials because the rules are clearer and more transparent.

The BUA boss expressed optimism that over time, the FX market will stabilize further, especially as the supply of foreign currency increases and the demand is managed more efficiently. He called on the government to continue supporting the FX market with sound policies and strong regulation to prevent manipulation and ensure its sustainability.

Since the FX unification policy was implemented, Rabiu noted that the process of obtaining foreign exchange has become more straightforward. Businesses now rely on the official market rather than on backdoor dealings or bureaucratic bottlenecks. According to him, this has allowed companies like BUA to streamline their operations and focus more on core business activities such as manufacturing and expansion rather than being bogged down by administrative hurdles.

He also pointed out that the reforms have encouraged investors and global partners to reconsider Nigeria as a viable investment destination. With fewer distortions in the market and a more transparent FX pricing system, foreign investors are better able to gauge risks and returns. Rabiu said this has been critical for attracting foreign capital and improving investor confidence.

In highlighting the broader impact, he stated that reforms in the FX space have enabled more price predictability for inputs, especially for industries that rely on imported machinery or raw materials. This, in turn, is helping to stabilize production costs and consumer prices. Rabiu also argued that these reforms, if sustained, could lead to increased industrialization, job creation, and economic growth.

He urged the federal government to remain committed to structural reforms, particularly those that support open market principles. He also advised that while short-term interventions may be needed to cushion the effects of volatility, long-term planning should focus on boosting local production, reducing import dependency, and growing foreign reserves through exports.

The BUA chairman reiterated his support for the economic policies of the current administration, particularly in the areas of FX reform and monetary policy transparency. He described the reforms as bold and essential for Nigeria’s future prosperity.

In conclusion, Rabiu emphasized that the unification of the FX market has been a game-changer for businesses in Nigeria. The move has removed the need for behind-the-scenes lobbying, restored transparency in foreign currency access, and allowed businesses to thrive based on merit and competitiveness rather than connections or privilege. For him, the current FX landscape is a step in the right direction, and its full benefits will become clearer in the coming months and years as confidence in the economy grows.