The Lagos Chamber of Commerce and Industry (LCCI) has said the decision of the Central Bank of Nigeria (`1) to close the Retail Dutch Auction System (RDAS) will lead to about 20 per cent increase in the cost of production for firms in the country.
The measure would also impact on sales performance, profit margins and ultimately capacity utilisation of their firms, the Chamber added, noting that import duty and other port charges, which are computed as a percentage of import costs will also correspondingly increase. President of the LCCI, Alhaji Remi Bello made these remarks in a statement. However, Bello maintained that the CBN policy implied that additional pressure on operating costs for erstwhile beneficiaries of the CBN RDAS forex window. Nevertheless, he noted that the policy has its merits and its downsides.