20231013_093155

LINATV NEWS CBN LIFTS BAN ON IMPORTATION OF CLOTHES, RICE, POULTRY, CEMENT 39 OTHER ITEMS

LINATV NEWS CBN LIFTS BAN ON IMPORTATION OF CLOTHES, RICE, POULTRY, CEMENT 39 OTHER ITEMS

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, The Central Bank of Nigeria (CBN) has on Thursday announced that it has restored the 43 items prohibited from access to the foreign exchange (FX) window in 2015.

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

According to a statement signed by the CBN’s Director of Corporate Communications, Isa AbdulMumin, “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.”

In June 2015, the Central Bank announced that some 41 items were “Not Valid for Foreign Exchange” because they could easily be produced in Nigeria rather than being imported into the country.

Some of the affected items include rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry, tomatoes/tomato paste, soap and cosmetics, and clothes.

Other items include private aeroplanes/jets, Indian incense, tinned fish in sauce, cold rolled steel sheets, galvanized steel sheets, roofing sheets, wheelbarrows, head pans, metal boxes/containers, enamelware, steel drums and pipes, wire mesh, steel nails, wood particle boards, and panels.

Equally affected were security and razor wire, wood particle and fibre boards and panels, wooden doors, furniture, toothpicks, glass/glassware, kitchen utensils, tableware, tiles (vitrified, ceramics), textiles, wooden fabrics, plastic/rubber products, polypropylene granules, and cellophane wrappers.

The apex bank subsequently added fertilizer and maize/corn to the list of banned items.

The CBN’s decision to lift the ban on the 43 items signifies a major step in resolving the country’s forex crisis.

It should be recalled that, over the past four months, the naira has depreciated by over 50 per cent at both the authorized and unauthorized market segments, after the Central Bank of Nigeria (CBN) announced in June that it had collapsed all forex windows into the Investors and exporters (I&E) window.

The move, according to the apex bank, is part of the Nigerian government’s efforts to improve liquidity and stability in the market and attract foreign investors into the Nigerian economy.

Leave A Comment

Your email address will not be published. Required fields are marked *