The House of Representatives has summoned the governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, to offer clarity on the removal of forex restrictions on 43 items.
The Central Bank of Nigeria had lifted the foreign exchange restrictions it placed on importers of 43 items eight years ago.
The House decision to invite Cardoso to brief it on why the apex bank lifted the ban followed the adoption of amendments to a motion of urgent public importance, moved by Hon. Sada Soli (APC, Katsina) at plenary on Tuesday.
The lawmakers passed the resolution to summon the CBN governor, following the adoption of a motion of urgent public importance by a member, Sada Soli, calling for clarification on the policy and its implications on the economy.
The lawmaker drew the attention of the House to the fact that some of the initially prohibited items have tariffs to protect local industries.
Further worried that Nigeria will not be competitive in the African Continental Free Trade Area if its markets are flooded with imported finished goods, the House resolved that its relevant committees should invite the central bank governor for further explanation.
Contributing to the motion, Jesse Onuakalusi, a lawmaker who represents Oshodi/Isolo II federal constituency of Lagos, proposed that the CBN should reverse the policy until the concluded legislative action on the matter.
His amendment to the motion was rejected when it was put to a voice by Tajudeen Abbas, Speaker of the House.
The House therefore resolved to invite, Cardoso and other stakeholders to appear to the House Committee on Regulatory Banking, Finance and Customs to explain the rationale behind the lifting of forex restriction on the 43 items.
By implication, importers of the commodities were forced to source for FX at the black market often at higher rates.
The decision comes amid high levels of volatility experienced in the FX market following the unification of all trading windows into the investors’ and exporters’ (I&E) window — the official FX market.
“The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates,” the statement issued by Isa AbdulMumin, CBN’s director of corporate communications.
