The House of Representatives has resolved to invite the Governor of the Central of Nigeria to appear before it, is over the FOREX restrictions placed on 43 items.
This is in pursuant to Order Eight, Rule 4 and Order Eight, Rule 7 (2) of the Standing Orders Of the
The House of Representatives.
The House of Representatives.
This follows the adoption of a motion of Urgent Public Importance on Need to Invite the Governor of the Central Bank of Nigeria on the Decision of Lifting FOREX Restriction on 43 Items” moved by Hon. Sada Soli.
House of Representatives has resolved to summon the Governor of the Central Bank of Nigeria ( CBN), Yemi Cardoso, over the lifting of the ban on the importation of rice and 43 other items.
He is expected to appear before the House Committees on Regulatory Banking, Finance and Customs to explain the rationale behind the policy reversal .
Hon Soli, in his motion, informed the House that in June, 2015, the CBN imposed restrictions on the importation of 43 items, including “about 11 food items”, so as to conserve foreign exchange reserves and promote local production.
Nevertheless, the lawmaker stated that on October 12, 2023, the CBN announced the lifting of Foreign Exchange restrictions hitherto placed on the 43 items.
He expressed concern that the “decision of the CBN will greatly affect local production of items such as rice, cement, and palm oil among others, as it will force local manufacturers to hold the short end of the stick, invariably leading to factory closure and ultimately eroding our capacity to build the country’s local economy.
“All the 43 items are from two critical sectors which have been identified by all policy documents from NEEDS, SEEDS to Vision 2022 as being areas that are critical to economic diversification.”
Hon Soli said that it is even worrisome that “some of the listed items enjoy 60%-70% subsidy from their countries of origin, thus putting Nigeria’s local products at a comparative disadvantage and without any protection, and will lead to job losses and social exclusion.
” The benefit of the cheaper imported inputs as stated by the CBN will give undue advantage to middlemen to drive the economy, which is inimical to our economic growth and not suitable to the current unified FOREX market in the country,” he said.
He expressed worry “that Nigeria will not be competitive in the African Continental Free Trade Area if our markets are flooded with imported finished goods.
” Further notes that some of the items have tariffs to protect local industries, as they are part of the imports prohibition list; Concerned that the decision of the CBN will greatly affect local production of items such as rica, cement, and palm oil among others, as it will force local manufacturers to hold thé short end of the stick, invariably leading to factory closure and ultimately eroding our capacity to build the country’s local economy,” he said
