CBN places 42 items on foreign exchange restriction list

The Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele, on
Tuesday said the bank’s policy to restrict importers of some 42 items
from accessing foreign exchange was the right call of action.

CBN Governor, Godwin Emefiele

Emefiele made this known in Abuja while fielding questions from
journalists at the end of the first Monetary Policy Committee meeting
for the year.

He said that the CBN took the measure to ban 42 items from accessing
foreign exchange through official routes, to encourage local production
of the items and simultaneously conserve the nation’s depleting foreign
reserves.

Some of the 42 items not valid for foreign exchange at the Nigerian
window include rice, cement, fertiliser, margarine, palm produce, beef,
vegetables, poultry and eggs, wooden doors and Iron rods.

“Available data has shown that in 2014, Nigeria imported 1.2 million
metric tonnes of rice, in 2015 it had dropped to 644,000 metric tonnes
and 2016, to 58,000 metric tonnes, 23,000 metric tonnes in 2017 and
6,000 metric tonnes in 2018.

“In terms of foreign exchange allocation, for wheat importation, we
spent 1.2 billion dollars in 2016; by 2017 it went down to 628,000
dollars.

“Sugar had gone down from 462 million dollars in 2014 to 255 million
dollars in 2017. Fish dropped from over one billion dollars in 2014 to
18 .96 million dollars in 2017.

“Importation of tomatoes has dropped from 7 million dollars to less than a million dollars in 2017.

“These results are because of the actions of the government
supporting the monetary policy of Nigeria today and we will be
aggressive in supporting small holder farmers that cultivates these
items,” he said.

Emefiele said that the CBN would continue to take an aggressive
stance to ensure that any food item currently being imported that can be
produced in the country is banned.

He said CBN was currently reviewing a list of other items and that
once they were convinced that there were companies in the country that
could sufficiently produce the said items; they would also be placed on
the foreign exchange restriction list.

“We think that the initiatives that the CBN has put in place in the
past to cut import and diversify the structure of the Nigerian economy
is yielding result and we will continue to be that aggressive.

“The CBN together with EFCC would investigate any company, any
individual suspected of bringing this item either through any border or
through smuggling of any means for money laundering and economic
sabotage.

“If we discover that these companies or individuals are involved in
any economic sabotage, we will write to all the banks, we will blacklist
those companies and individuals running those companies.

“The companies can no longer operate any bank account in any Nigerian
bank and there will be no need to talk about prosecuting you but we
will not allow you do business again in Nigeria,” he said.

Emefiele said that CBN intervention in the foreign exchange market to keep it stable was the right call.

He recalled that in 2016, the Naira had depreciated to more over N500
to a dollar and could have reached N1000 without the intervention of
the CBN.

He reiterated the bank’s commitment to continue to intervene in the
interbank foreign exchange market to ensure liquidity in the foreign
exchange market and maintain stability.

Emefiele announced that the CBN had successfully resolved the issue
with MTN on allegation of illegal repatriation of 8.1 billion dollars.

“I am glad to tell you in November we held a round of meetings with
MTN officials even from South-Africa and by December we concluded those
engagements and the matters were resolved.

“It resulted in a notional reversal. Let me make it clear that it is
not a fine or a penalty. It was a notional reversal of 53 million
dollars amounting to about N19.5 billion.

“This amount has since been paid by the MTN and terms of settlement
of this matter has already been lodged at the Nigerian court,” he said.