CBN Lifts Forex Ban On Importation Of Rice, Cement, 41 Others

By Ayodele Oni

As the new Management team of the Central Bank of Nigeria, (CBN) is settling down, some goods placed under foreign exchange ban are now free to enjoy equal opportunity and rates like others.

The apex bank on Thursday, finally lifted the foreign exchange restriction ban placed by the immediate past Governor of the Bank, Mr Godwin Emefiele on the importation of 43 items.

The Apex Bank lifted the restriction in a statement issued by the Director, Corporate Communications Department, Isa AbdulMumin.

It explained in a statement that the 43 items are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.

The ban on the 43 items was announced in 2015 through a Circular referenced TED/FEM/FPC/GEN/01/010.

The CBN explained then that the measure was to sustain the stability of the naira and ensure the efficient utilisation of forex.

Importers of the 41 items were excluded from accessing forex at the exchange markets to encourage local production and modified the list subsequently to 43 items.

The items include clothing’s, cement processed foods and meat, poultry products, metals and woods, among others.

In the statement, the CBN said it will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a willing buyer – willing seller principle.

It said, “The CBN reiterates that the prevailing Foreign Exchange rates should be referenced from platforms such as the CBN website, FMDQ, and other recognized or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.

“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/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.

“The CBN is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.

“The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal. Participants and the general public are to be guided by the above.”