CBN Lifts FOREX Ban On 43 Items After Eight Years
Eight years after 43 items were banned from accessing Foreign Exchange for importation into the country, the Central Bank of Nigeria, Thursday lifted the ban on 43 items imposed under the Godwin Emefiele CBN era as the apex bank’s governor.
This development was disclosed in a circular by the apex bank titled “CBN Restates Commitment To Boost Liquidity in FOREX Market” released on October 12, 2023.
According to the apex bank, this will also boost liquidity in the Nigerian Foreign Exchange Market and intervene from time to time, stating that interventions will decrease as liquidity improves.
The Circular signed by Isa AbdulMumin, Director, Corporate Communications reads, “The Central Bank of Nigeria (CBN) 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.
The CBN reiterates that the prevailing Foreign Exchange (FX) 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.
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”.
According to the reports, Citigroup had earlier canvassed that the restrictions placed on foreign exchange provisions for 43 items by the Central Bank of Nigeria must go if the country is to fix challenges plaguing the forex market.
This was according to the CEEMEA Frontier Credit Market Commentary written by credit analyst, Ayso van Eysinga, following a trip to Nigeria.
In his notes, Van Eysinga said that apart from clearing the backlog of forex demand, there was a need to remove restrictions from the 43 items.
Some of the items banned from accessing FX for importation include;
Rice
Cement
Margarine
Palm kernel/palm oil products/vegetable oils
Meat and processed meat products
Vegetables and processed vegetable products
Poultry – chicken, eggs, turkey
Private airplanes/jets
Indian incense
Tinned fish in sauce (geisha)/sardines
Cold-rolled steel sheets
Galvanised steel sheets
Roofing sheets
Wheelbarrows
Head pans
Metal boxes and containers
Enamelware
Steel drums
Steel pipes
Wire rods (deformed and not deformed)
Iron rods and reinforcing bars
Wire mesh
Steel nails
Security and razor wire
Wood particle boards and panels
Wood fibre boards and panels
Plywood boards and panels
Wooden doors
Furniture
Toothpicks
Glass and Glassware
Kitchen utensils
Tableware
Tiles – vitrified and ceramic
Textiles
Woven fabrics
Clothes
Plastic and rubber products, polypropylene granules, cellophane wrappers
Soap and cosmetics
Tomatoes/tomato paste
Eurobond/foreign currency bond/ share purchases
Dairy/milk
Maize.
