Expert Urges Firms to Adopt Import Substitution Strategies – THISDAY

Obinna Chima

Operators of businesses in the country have been advised to redefine their strategies in view of the challenges in the foreign exchange market.

The President/Chairman of Council, CIBN, Prof Segun Ajibola, made the remark at a breakfast session titled: “Business Dynamics under a Flexible Exchange Rate Regime,” that took place in Lagos.

According to him, more than before, businesses need to move away from import dependent technology and substitute imported raw materials for local ones.

He also stated that consumers need to buy into the new dynamics and tame their insatiable appetite for imported commodities, just as he urged government to provide more incentives for businesses that succeed in their quest for import substitution and export promotion.

According to Ajibola, the interaction between business management and exchange rate is very profound especially in developing economies such as Nigeria where heavy reliance is placed on imported basic necessities of life. This, to him, is so because the array of imported items covers: consumer durable and non-durables, heavy industrial plant and machinery, and manpower and technology.