Lucky Obukohwo, Reporting
House of Representatives has agreed to invite the Governor of Central Bank of Nigeria (CBN), Yemi Cardoso, to appear before it to explain his reasons behind the lifting of the ban on the importation of rice and 43 other items, saying that the lifting of the ban will be counterproductive to the nation’s economy.
He is expected to appear before the House Committees on Regulatory Banking, Finance and Customs to explain the rationale behind the policy reversal.
This is sequel to the adoption of a motion by Chairman, House Committee on Water Resources, Sada Soli, asking the parliament to invite the CBN governor over the recent decision of the apex bank to lift foreign exchange restrictions on 43 items.
Soli, in his motion, told 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.
He urged that on October 12, 2023, the CBN announced the lifting of foreign exchange restrictions hitherto placed on the 43 items.
Soli said “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.”
Soli said it is even worrisome that “some of the listed items enjoy 60-70 per cent 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,” Soli added.
He also said “that Nigeria will not be competitive in the African Continental Free Trade Area if our markets are flooded with imported finished goods.”