House Summons CBN Gov for Lifting FX Restrictions on 43 Items

Adedayo Akinwale in Abuja

The House of House of Representatives has summoned the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso, for lifting FX Restrictions on 43 items.

Presenting the motion at the plenary on Tuesday  under Order 8, Rule 4 and Order 8, Rule 7(2) of the Standing Orders of the House, Hon. Sada 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.
The lawmaker added that October 12, 2023, the CBN announced, among other issues, the lifting of FOREX restrictions hitherto placed on the 43 items.
Soli noted that some of the items had tariffs to protect local industries, as they were on the imports prohibition list.
He expressed concern that the decision of the CBN would greatly affect local production of items such as rice, cement, and palm oil among others, as it would force local manufacturers to hold the short end of the stick.
Soli added that this would invariably lead to factory closure and ultimately erode the country’s capacity to build the country’s local economy.
He said: “Aware that almost all the 43 items are from two critical sectors which have been identified by all policy documents from NEEDS, SEEDS to Vision 2022 as being areas that are critical to economic diversification;
“Worried that some of the listed items enjoy 60 per cent-70 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.”
Soli lamented that the benefit of the cheaper imported inputs as stated by the CBN would give undue advantage to middlemen to drive the economy, which was inimical to the economic growth and not suitable to the current unified Forex market in the country.

The lawmaker expressed concern that Nigeria would not be competitive in the African Continental Free Trade Area if the country’s markets were flooded with imported finished goods.
He lamented that the decision followed the rising food inflation in the country which had significantly impacted the economy and the purchasing power of consumers in the country.