Reps Invite CBN Gov, Seeks Clarification Over Impact Of Lifting FX Ban Lifted On 43 Items

The House of Representatives has extended an invitation to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso to clarify the implication of the lifting forex restriction on 43 items on the Nigerian economy

This follows the adoption of a motion of urgent public importance by a member, Sada Soli, Federal Representative representing Jibia/Kaita Constituency Katsina State 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.

Two weeks ago, the apex bank lifted forex ban on 43 items and also promised to intervene in the FX market from “time to time”.

The apex bank had in 2015 restricted the items from accessing FX from the I&E window, saying they were not valid for foreign exchange and could be produced in the country. Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others.

But weeks ago, the apex bank in a statement said, “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.

“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”