News

FX Reforms Have Ended the Era of Lobbying for Dollars – BUA’s Abdul Samad Rabiu

Published by Tope Fakinlede on July 22nd, 2025.

FX Reforms Have Ended the Era of Lobbying for Dollars – BUA’s Abdul Samad Rabiu

Dr. Abdul Samad Rabiu, Chairman of BUA Cement Plc, has credited recent foreign exchange reforms by the Central Bank of Nigeria (CBN) with eliminating the long-standing practice of lobbying for U.S. dollars by businesses seeking to operate in the country’s constrained FX environment.

Speaking at a press briefing in Abuja on Monday, following BUA Cement’s 9th Annual General Meeting, Rabiu praised the CBN’s shift toward a more open, market-driven FX framework. He said the new policy direction has introduced a level playing field for businesses and dismantled the artificial scarcity that previously plagued the system.

“In the past, accessing foreign exchange required constant visits to the Central Bank—sometimes every two weeks—just to survive,” Rabiu said. “But now, with the reforms in place, I hardly need to see the CBN Governor. The market determines the rate, and everyone gets equal access through their banks.”

Rabiu criticized the former dual-rate system, where an official exchange rate far below the market reality created major distortions and bottlenecks. “Back then, the official rate was N500 to N600, but hardly anyone could actually get FX at that price. Meanwhile, the real market rate was closer to N1,000. It created an artificial economy.”

He lauded the CBN’s current strategy, which allows businesses to access foreign exchange at the prevailing market rate, helping to remove favoritism and increase transparency in the FX space. “Today, what you see is what you get. Everyone accesses FX at the same market rate through their banks, which is far more efficient and fair.”

Rabiu also shared a positive outlook for the naira, expressing confidence that the local currency could continue its recovery, potentially appreciating to around N1,200 per U.S. dollar in the near term—down from highs of nearly N2,000 earlier this year. He noted that the improving exchange rate is already having an impact on commodity prices, including cement and basic food items.

On the issue of cement pricing, Rabiu acknowledged recent cost pressures, citing foreign exchange fluctuations, energy expenses, and the high cost of imported machinery as key drivers. However, he revealed that BUA Cement has taken steps to mitigate these costs, including renegotiating service contracts to favor local suppliers and reduce FX dependency.