Gradually, the Foreign Exchange (FOREX) restriction placed on 41 items by the Central Bank of Nigeria (CBN) is generating positive impact across the country.
The policy, which among others is designed to protect local production and create employment for Nigerians is according to experts the only way forward for the Nigerian economy.
Indeed, to curtail challenges associated with the policy, the apex Bank has already released a list of items that can source foreign exchange (forex) from the market.
The list, sent to all authorised dealers, Nigeria Customs and the public, has 36 categories. It is endorsed by Director, Trade and Exchange, W.D Gotring.
He explained that the list became exigent following misconceptions and enquiries across market on items that are “Valid for Foreign Exchange”.
The items that made the list include animal or vegetable fats and oils fractions, hydrogenated- not including palm oil/ olein and margarine; prepared glues and adhesive based polymers of headings 39.01 to 39.13 or on rubber; other plates, sheets, film, foil, and strip of polymers of ethylene printed- only for pharmaceutical and manufacturing.
Others are bobbins, spools, cops and similar supports of paper or paperboard used for winding textile yarn; uncoated kraft paper and board, in rolls, uncoated kraft paper and board, in rolls, paper coated with kaolin (China clay), synthetic filament, artificial filament, woven fabrics of synthetic filament yarn, including woven fabrics obtained from material polypropylene fabrics, of the type used as carpet backing.
The list also includes glass in balls, rods or tubes, unworked, float glass, coloured throughout the mass opacified, flashed or merely surface ground only for pharmaceutical manufacturing, non-domestic heating/cooling equipment, non-electric water heaters among others.
Speaking on the development, an economist, Matthew Otide while commending the CBN Governor, urged the Nigeria Customs Service ton play its part by curtailing smuggling.
He identified smuggling as the bane of Nigeria’s economy, adding that the success of the CBN policy is tied to a dedicated Customs service.
Meanwhile, CBN has unveiled plans to sanction some corporate and entities said to be engaging in the dumping of the 41 items restricted from being imported into the country with foreign exchange sourced from the Nigerian Foreign Exchange Market.
CBN in a circular said the the apex bank had discovered that there were circumvention of the policy as the restricted items were being dumped in the country.
It said the implications were that the growth and employment benefits arising from the policy may be eroded if not checked.
“The CBN views this development with trepidation. The Economic Intelligence Unit of the bank in collaboration with the EFCC would commence immediate investigation of the accounts of the corporate and entities engaged in this unwholesome act with a view to visiting severe sanctions on all the culprits,” the circular said.
“Such sanctions would among others include blacklisting the corporates and their directors; closure of their bank accounts; and restricting them from maintaining any bank accounts in any bank under the CBN remit. Banks that provided their platforms for such economic abuses would also be appropriately sanctioned.”
