Tinubu’s Govt Lifts 43 Items Banned by CBN in 2015.
To address Nigeria’s foreign exchange crisis, the Central Bank of Nigeria (CBN) has lifted the ban on 43 items that were previously restricted from accessing official foreign exchange sources since 2015. This decision, disclosed in a circular released on October 12, 2023, marks a shift in CBN’s policy and aligns with a commitment to a market-driven exchange rate system.
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The 43 items include a wide range of imports, such as rice, cement, margarine, palm kernel/palm oil products, and various metals and construction materials. These items can now access the Nigerian Foreign Exchange Market.
The CBN is introducing the “Willing Buyer – Willing Seller” principle to achieve a more market-driven exchange rate system. Participants are advised to reference foreign exchange rates only from official platforms like the CBN website and FMDQ to avoid potential misinformation. Notably, the disparity between official and parallel market rates is currently significant, standing at 25%.
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The CBN plans to intermittently boost liquidity in the Nigerian Foreign Exchange Market, with a decreasing frequency of interventions as market stability improves. The bank has also pledged to address the longstanding FX backlog issue and is in consultation with market players to pursue a unified foreign exchange market.
This decision to lift the ban on these 43 items is a significant step in resolving Nigeria’s forex crisis. However, questions remain about how the CBN will meet the demand for forex given its stretched external reserve position and the current disparity between official and parallel market rates.
Analysts suggest that the central bank might need to adjust the exchange rate on the Investors’ and Exporters’ (I&E) window to mitigate arbitrage risks. As this situation evolves, it remains to be seen how it will impact Nigeria’s foreign exchange market and overall economic stability.
43 Items Banned by CBN in 2015
The following are the list of the 43 items that were previously banned but have now been allowed access to the Nigerian Foreign Exchange Market:
- 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 (Gelsha)/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 Wire
- Wood Particle Boards and Panels
- Wood Fiber Boards and Panels
- Plywood Boards and Panels
- Wooden Doors
- Furniture
- Toothpicks
- Glass and Glassware
- Kitchen Utensils
- Tableware
- Tiles – vitrified and ceramic
- Textiles
- Woven Fabrics
- Clothes
- Plastic and Rubber Products, Cellophane Wrappers
- Soap and cosmetics
- Tomatoes/Tomato Pastes
- Euro bond/Foreign Currency Bond/Share Purchases
- Milk
- Maize
