CBN Governor summoned over lifting of Forex restrictions on 43 items

Published

1 year ago

October 24, 2023

The House of Representatives has issued a summons to Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), concerning the recent decision to lift Foreign Exchange restrictions on 43 imported items.

This action was taken in response to a resolution passed during a Plenary session on Tuesday, prompted by a motion of urgent public importance presented by Sada Soli Jibia (APC, Katsina).

In his presentation, Jibia recalled that the CBN had initially imposed these restrictions in June 2015 as a measure to safeguard foreign exchange reserves and boost local production, including approximately 11 food items.

He noted that on October 12, 2023, the central bank made an announcement, which included the lifting of Foreign Exchange restrictions on the aforementioned 43 items.

Soli also pointed out that certain items are subject to tariffs aimed at safeguarding domestic industries, as they are part of the list of banned imports.

The lawmaker said, “The decision of the CBN will greatly affect local production of items such as rice, cement, and palm oil among others, as it will force local manufacturers to hold the short end of the stick, invariably leading to factory closure and ultimately eroding our capacity to build the country’s local economy.

“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.

“Some of the listed items enjoy 60%-70% 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.”