Naira depreciation forces review of Standard Organization Act – FG


The loss of value of the Nigerian Naira against the US dollar could trigger a review of the Standard Organization Act of 2015, citing the value of N1 million since 2015.

This was revealed by Malam Farouk Salim, Managing Director of SON in Onne Port, Rivers, on Tuesday.

The SON chief also noted that he would impose harsher punishment in terms of mandatory jail sentences for individuals and their associates who import substandard and life-threatening products into Nigeria.

He urged the National Assembly to propose harsher punishment for illicit importers who smuggle substandard and counterfeit products into the country, citing that “the smuggling of substandard and counterfeit products into the country is the greatest threat to our security.” national.

  • “The more low-quality goods that enter the country, the less our industries will produce and employ our children, resulting in less taxes and revenue for the government.
  • “We believe that after seven years, the 2015 Standard Organization Act should be amended and improved, considering that N1 million in 2015 is not the same value today.

He added that they would also call for harsher punishment in terms of mandatory jail sentences for individuals and their collaborators who import substandard, life-threatening products into Nigeria.

The news continues after this announcement.

  • “We are fighting against the importation of substandard goods as a government because we want to save our country and the lives of our people,” he added.

what you should know

Recall Nairametrics reported earlier this year that since central bank Governor Godwin Emefiele took office in March 2014 to date, the official Naira rate against the US dollar has depreciated from N164 to N419 ( or 61% weaker)

  • In the parallel market, the situation is even worse, where the Naira has weakened from $1/N180 to $1/605. This is a 70.5% depreciation of the Naira over 8 years.
  • This rapid depreciation over a span of 8 years has come despite the CBN’s numerous forex policies, although the policies have been skewed towards capital controls and demand side management.
  • The fall in oil prices that began in late 2014 led to the first devaluation of the naira, which fell from N165/$1 to around N187/$1.
  • Specifically, between 2017 and 2019, the official rate hovered around the range of N360/$1 but is now as low as N745/$1


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