The Central Bank of Nigeria (CBN) has announced the removal of restrictions on 43 previously banned items that were imposed during the tenure of Godwin Emefiele as the head of the CBN.
This decision was contained in a circular issued by the central bank on October 12, 2023.
The central bank has further stated its intention to enhance liquidity in the Nigerian Foreign Exchange Market and will periodically intervene, with the caveat that these interventions will decrease as liquidity improves.
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The 43 items include: 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) or 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, Wire mesh, Steel nails, Security and razor fencing and poles, Wood particle boards and panels, Wood fiberboards and panels, Plywood boards and panels, Wooden doors, Toothpicks, Glass and glassware, Kitchen utensils, Tableware, Tiles-vitrified and ceramic, 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.
The circular partly read: “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 CB reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CB website, FMDQ, and other recognized 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 CB will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CB interventions will gradually decrease.
Importers of all 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addenda are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market. The CB is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.
The CB 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.”