Post by goodgovernance on Aug 1, 2015 17:39:55 GMT
As part of efforts to reduce the pressure on the Naira while preserving the nation’s external reserves, on June 23, the Central Bank of Nigeria (CBN) issued circular excluding importers of 41 selected goods and services from accessing foreign exchange at the Nigerian foreign exchange markets.
According to the new directive from the apex bank, certain categories of items which had already been classified as ‘not valid for forex’ cannot be funded at the interbank from proceeds of exports and Bureau de change sources. The CBN said authorised dealers are enjoined to ensure that these items are funded from sources outside all the segments of the Nigerian foreign exchange markets.
In specific terms, the items affected by the CBN’s policy include rice, cement, margarine, palm kernel/palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry-chicken, eggs, turkey, private airplanes/jets, Indian Incense, Tinned fish in sauce (Geisha)/Sardines, cold rolled sheets, galvanised sheets, roofing sheets, wheelbarrows, head pans, metal boxes and containers.
The list also include enamelware, steel drums, steel pipes, wire rods (deformed and not deformed), iron rods and reinforcing bars, wire mesh, steel nails, security and razor wire, wood particle boards and panels, wood fiber boards and panels, plywood boards and panel and wooden doors.
Other items affected are toothpicks, glass and glassware, kitchen utensils, tableware, tiles-vitrified and ceramic, textiles, woven fabrics, clothes, plastic and rubber products, polypropylene granules, cellophane wrappers, soap and cosmetics, tomatoes/tomato pastes, euro bond/foreign currency bond/share purchases.
The circular signed by Director, Banking Supervision, Olakanmi Gbadamosi reads in part: “In the continuing efforts to sustain the stability of the forex market and ensure efficient utilisation of forex and the derivation of optimum benefits from goods and services imported into the country, it has become imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian forex markets in order to encourage local production of these items.
“The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation.
“For the avoidance of doubt, please note that the importation of these items are not banned, thus importers desirous of importing these items shall do so using their funds without any recourse to the Nigerian foreign exchange market.”
The implication of this CBN policy is that all importers who want to continue bringing in these goods or services into the country will have to source their foreign exchange from private sources.
According to the new directive from the apex bank, certain categories of items which had already been classified as ‘not valid for forex’ cannot be funded at the interbank from proceeds of exports and Bureau de change sources. The CBN said authorised dealers are enjoined to ensure that these items are funded from sources outside all the segments of the Nigerian foreign exchange markets.
In specific terms, the items affected by the CBN’s policy include rice, cement, margarine, palm kernel/palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry-chicken, eggs, turkey, private airplanes/jets, Indian Incense, Tinned fish in sauce (Geisha)/Sardines, cold rolled sheets, galvanised sheets, roofing sheets, wheelbarrows, head pans, metal boxes and containers.
The list also include enamelware, steel drums, steel pipes, wire rods (deformed and not deformed), iron rods and reinforcing bars, wire mesh, steel nails, security and razor wire, wood particle boards and panels, wood fiber boards and panels, plywood boards and panel and wooden doors.
Other items affected are toothpicks, glass and glassware, kitchen utensils, tableware, tiles-vitrified and ceramic, textiles, woven fabrics, clothes, plastic and rubber products, polypropylene granules, cellophane wrappers, soap and cosmetics, tomatoes/tomato pastes, euro bond/foreign currency bond/share purchases.
The circular signed by Director, Banking Supervision, Olakanmi Gbadamosi reads in part: “In the continuing efforts to sustain the stability of the forex market and ensure efficient utilisation of forex and the derivation of optimum benefits from goods and services imported into the country, it has become imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian forex markets in order to encourage local production of these items.
“The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation.
“For the avoidance of doubt, please note that the importation of these items are not banned, thus importers desirous of importing these items shall do so using their funds without any recourse to the Nigerian foreign exchange market.”
The implication of this CBN policy is that all importers who want to continue bringing in these goods or services into the country will have to source their foreign exchange from private sources.