Reps Invite CBN Governor Over Plans to Lift Forex Restriction on 43 Items

The House of Representatives has decided to invite the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, over the bank’s decision to lift the restriction on forex supply on 43 imported items.

The decision was sequel to a unanimous adoption of a motion by Rep. Sada Soli (APC-Katsina state) at plenary on Tuesday.

Some of the items include rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, poultry and processed poultry products, tinned fish in sauce (Geisha)/sardine, cold rolled steel sheets, galvanized steel sheets among others.

The WikkiTimes earlier reported the statement issued by the CBN, with a list of all the concerned items.

But, moving the motion, Soli recalled that the CBN imposed the restrictions in June 2015 to conserve the foreign exchange reserves and promote local production of certain goods, including about 11 food items.

He recalled that on Oct. 12, the apex bank announced, among other issues, the lift on FOREX restrictions hitherto placed on 43 items.

According to him, some items have tariffs to protect local industries, as they are part of the import prohibition list.

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Soli expressed concern that the bank’s decision will significantly affect local production of items such as rice, cement, and palm oil, among others.

The lawmaker said it would force local manufacturers to hold the short end of the stick, leading to factory closure and ultimately eroding capacity to build the country’s local economy.

“Almost all the 43 items are from two critical sectors identified by all policy documents from NEEDS, SEEDS to Vision 2022 as being critical to economic diversification. (NAN)

“Worried that some of the listed items enjoy 60 to 70 per cent subsidy from their countries of origin, thus putting Nigeria’s local products at a comparative disadvantage and without any protection, and will lead to job losses and social exclusion;

“Also worried that the benefit of the cheaper imported inputs as stated by the CBN will give undue advantage to middlemen to drive the economy, which is inimical to our economic growth and unsuitable to the current unified FOREX market in the country.

“Further worried that Nigeria will not be competitive in the African Continental Free Trade Area if our markets are flooded with imported finished goods.

“The decision followed the rising food inflation in the country, which has significantly impacted the economy and the purchasing power of consumers in the country,” he said.

Soli said that lifting the FOREX restriction on the importation of 43 items may not have a meaningful impact on the rising food inflation due to the soaring exchange rate.

In his ruling, the Speaker of the House, Rep. Tajudeen Abbas, pursuant to Section 8 (4) (a) (b) and Section 5 (b) of the CBN Act, 2007, said that the CBN governor should be invited.

He mandated the Committees on Customs and Finance to interface with the governor to explain the reasons for the decision.



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