Full List: Importers of Rice, Cement, Clothes, 40 Other Items Can Now Access Forex at Official Rates
- The Central Bank of Nigeria (CBN) has lifted the ban on 43 items restricted from having access to foreign exchange.
- In 2015, the importers of the 43 items were restricted from accessing foreign exchange in the official market
- Analysts believe that the move contributed to high inflation and standard of living in Nigeria
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The Central Bank of Nigeria (CBN), on Thursday, October 12, 2023, lifted the ban on 43 items restricted from accessing foreign exchange at the official window.
In 2015, the CBN under Godwin Emefiele banned 41 items, restricting their importers from accessing foreign exchange at the official window.
Source: Getty Images
Experts pessimistic move will ease inflation, other constraints
The list was later expanded with two new items added.
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Analysts believe the ban was needless and contributed significantly to rising inflation and Nigeria's high cost of living.
In an exclusive interview, Frederick Osas, an investment banker, told Legit.ng that the ban on the items did not make common sense as they could not be manufactured in Nigeria.
"The ban aimed to encourage local production, especially rice. But you can see that Nigeria failed terribly in that regard. Instead of pushing down inflation, the ban contributed to high inflation.
Nigerians should know that the items are not banned in the country but that their importers can no longer have access to foreign exchange at the official rate to bring them to Nigeria," Osa said.
He said CBN and the Nigerian government must have thought that the ban affected the standard of living and inflation, but that is not entirely true.
According to him, there are other factors affecting inflation in Nigeria.
"The country is running empty on Forex, and this is because we don't export anything other than crude oil. So, we have one commodity bringing in all the Forex, and importers will begin to scramble for the few forexes available," he said.
He stated that the move might amount to little, especially in helping the naira regain its strength against the dollar, but that it will go a long way, especially in food imports.
He said:
"Remember that the arrowhead of inflation is food. The moment importers are allowed to import some food items into the country, it will ease the prices because there are so many mouths chasing the few available right now."
Nigeria has battled high inflation, which is now 25.8% as of August 2023. Experts believe prohibiting some items from accessing Forex at the official window contributed to the spike in inflation and the fall of the naira.
Below is the list of the items:
- Rice
- Cement
- Margarine
- Palm kernel
- Palm oil products
- Vegetable oils
- Meat and processed meat products
- Vegetables and processed vegetable products
- Poultry and processed poultry products
- Tinned fish in sauce (Geisha)/sardine
- Cold-rolled steel sheets
- Galvanized steel sheets
- Roofing sheets
- Wheelbarrows
- Head pans
- Metal boxes and containers
- Enamelware
- Steel drums
- Steel pipes
- Wire rods (deformed and not deformed)
- Iron rods
- Reinforcing bars
- Wire mesh
- Steel nails
- Security and razor fencing and poles
- Wood particle boards and panels
- Wood fiberboards and panels
- Plywood boards and panels
- Wooden doors
- Toothpicks
- Glass and glassware
- Kitchen utensils
- Tableware
- Tiles-vitrified and ceramic
- Gas cylinders
- Woven fabrics
- Clothes
- Plastic and rubber products
- Polypropylene granules
- Cellophane wrappers and bags
- Soap and cosmetics
- Tomatoes/tomato paste
- Eurobond/foreign currency bond/ share purchases
After 8 years, CBN Finally Lifts Ban on 43 Restricted Items in Nigeria
Legit.ng reported that the limitations on foreign exchange imposed by the Central Bank of Nigeria (CBN) on importers of 43 commodities eight years ago have finally been abolished.
This was contained in a statement signed by Dr. Isa AbdulMumin, the bank's director of corporate communications.
The development follows an earlier report by Legit.ng that the CBN clarified foreign exchange (FX) access for importers of 43 items previously restricted from obtaining FX through the official window.
Source: Legit.ng
