The House of Representatives has summoned the governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, to offer clarity on the removal of forex restrictions on 43 items.

The lower legislative chamber invited Cardoso during plenary on Tuesday following the adoption of a motion of urgent public importance made by a lawmaker from Katsina state, Sada Soli.

Cardoso and other stakeholders are to appear before the house committees on regulatory banking, finance and customs.

The CBN on October 12, 2023, announced, among other policy issues, the lifting of foreign exchange restrictions hitherto placed on importing 43 items.

On June 23, 2015, the CBN issued Circular TED/FEM/FPC/GN/01/010, which put 41 product categories on a list of items not valid for forex in the Nigerian Foreign Exchange market.

Two more product categories were added in subsequent years, limiting the total of imported product categories from accessing FX to 43.

The restriction aimed at reducing foreign exchange demand for products that could be locally produced, improve employment generation and conserve foreign reserves.

The items were Rice, Cement, Margarine, Palm kernel, Palm oil products, Vegetable oils, Meat and processed meat products, Vegetables and processed vegetable products.

Others are Poultry and processed poultry products; Tinned fish in sauce (Geisha)/sardine; Cold rolled steel sheets; Galvanized steel sheets; Wheelbarrows; Head pans; Metal boxes and containers.

Also included are Enamelware; Steel drums; Steel pipes, Wire rods (deformed and not deformed); Iron rods; Reinforcing bars; Wire mesh; Steel nails; Security and razor fencing and poles; Wood particle boards and panels; Wood fiberboards and panels.

Others are Plywood boards and panels; Wooden doors; Toothpicks; Glass and glassware; Kitchen utensils, Tableware; Tiles-vitrified and ceramic; Gas cylinders; Woven fabrics; Clothes; Plastic and rubber products; Polypropylene granules; Cellophane wrappers and bags; Soap and cosmetics; Tomatoes/tomato pastes, and Eurobond/foreign currency bond/share purchases.

The CBN spokesperson, Isa AbdulMumin, hinted that as part of its responsibility to ensure price stability, the apex bank 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,” AbdulMumin said.

“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 Guardian)

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