FOREX Prohibition On 43 Items Is Lifted By CBN

The restrictions on access to the official foreign exchange market for the importation of about 43 commodities were put in place by the Central Bank of Nigeria (CBN) under the former governor, Godwin Emefiele, nine years ago. The restrictions have now been lifted by the apex bank.

This was said in a statement issued by the apex bank on Thursday and signed by Dr. Isa Abdulmumin, Director of Corporate Communications.

In order to fulfill the increased demand, the statement further guaranteed that the apex bank would continue to act at the official foreign exchange market.

The official end of the market has seen the value of the naira remain consistent at roughly N760–N770 to the dollar, while the parallel market has seen it spiral to over N1,030 to the dollar as of Wednesday due to pressure from demand.

The following 43 products had their access to foreign exchange from the FX market banned by the Central Bank of Nigeria (CBN) as of October 2021: rice, cement, margarine, palm kernel, palm oil products, and vegetable oils; meat and processed meat products; and vegetables and processed vegetable products.

Others are: Poultry and processed poultry products, Tinned fish in sauce (Geisha)/sardines, Cold rolled steel sheets, Galvanized steel sheets, Roofing sheets, Wheelbarrows, Head pans, Metal boxes and containers, Enamelware, Steel drums, Steel pipes, Wire rods (deformed and not deformed), Iron rods and reinforcing bars.

Textiles, Woven fabrics, Clothes, Plastic and rubber products, polypropylene granules, cellophane wrappers and bags, Soap and cosmetics, Tomatoes/tomato pastes, Eurobond/foreign currency bond/ share purchases, Piston crowns, Ball bearings, High voltage cables, Transformers/switch gears and Gas cylinders were also on list.

The statement said, "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.

He said: "The Central Bank of Nigeria (CBN) will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer - Willing Seller principle.

"The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.

"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/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.

"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 CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal. Participants and the general public are to be guided by the above."