THE House of Representatives is to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to discuss the new policy that lifts currency restrictions on 43 commodities.
The House is seeking clarification on the policy and its economic repercussions.
Following the passage of a motion of urgent public concern by a member, Sada Soli, seeking an explanation on the policy and its ramifications for the economy, lawmakers passed the resolution summoning the CBN governor.
The lawmaker called the House’s attention to the fact that some of the initially prohibited commodities had tariffs in place to protect the domestic industry.
Concerned that Nigeria will be unable to compete in the African Continental Free Trade Area if its markets are saturated with imported finished goods, the House resolved that the governor of the central bank be summoned for additional explanation.
The apex bank eased the forex ban on 43 commodities two weeks ago and promised to intervene in the FX market from “time to time.”
The central bank barred the items from getting FX through the I&E window in 2015, claiming they were not valid for foreign exchange as they could be manufactured in the country. Among the items affected are rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics.
But weeks ago, the apex bank, in a statement, said, “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/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”
