The Central Bank of Nigeria has said it is raising dollar supply in the foreign exchange market, just as it also lifted the ban on 43 items that were previously not qualified for forex at the official market.
The decision came after the naira tumbled to 1,050/$ at the parallel market on Thursday, following pressure from international organizations and experts.
It was earlier noted that despite unifying exchange rates, the CBN had in June said that the status quo remained on the 43 non-eligible items banned from the forex market introduced under the former governor, Godwin Emefiele.
Nigerians imported not less than nine items worth N18.12tn from the forex ban list of the CBN between 2016 and 2022.
According to an analysis of Nigerian Foreign Trade reports of the National Bureau of Statistics from 2016 to 2022, items such as crude palm oil, vegetable products, animal products, meat, vegetable fats and oil, steel products, rubber, plastic, clothes, and textiles were imported from various countries.
In a different report, it was stated that despite the unavailability of forex for banned items by CBN, Nigerians imported five items worth N543bn in the first quarter of 2023.
However, different economic experts and organizations have repeatedly advised the CBN to remove the forex restrictions.
Earlier in the week, Citigroup said that the restrictions placed on foreign exchange provisions for 43 items by the CBN must go if the country was to fix the challenges plaguing the forex market.
This was revealed in 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.
Also, in its Nigeria Development Update (June 2023), the World Bank advised the CBN to end its forex restriction policy. It said this would complement moves to reduce inflation through a sequenced and coordinated mix of monetary, fiscal and trade plans.
The CBN has finally succumbed to pressure and lifted the ban on the importers of 43 items restricted from accessing foreign exchange on its official platform.
It disclosed this in a statement titled, ‘CBN restates commitment to boost liquidity in the forex market’, signed by the bank’s Director, Corporate Communications, Isa AbdulMumin, on Thursday.
“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 statement said.
The apex bank said it would continue to promote orderliness and professional conduct by all Nigerian foreign exchange market participants to ensure market forces determined exchange rates on a willing buyer – willing seller principle.
