The House of Representatives is to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to discuss the new policy that will ease currency restrictions on 43 commodities.
The House is seeking clarification on the policy and its economic repercussions.
Following the passage of a motion of urgent public concern by a member, Sada Soli, seeking an explanation on the policy and its ramifications for the economy, the parliamentarians passed the resolution summoning the CBN governor.
The legislator called the House’s attention to the fact that some of the initially disallowed commodities had tariffs in place to protect domestic industry.
Further worried that Nigeria will not be competitive in the African Continental Free Trade Area if its markets are flooded with imported finished goods, the House resolved that its relevant committees should invite the central bank governor for further explanation.
Two weeks ago, the apex bank lifted the forex ban on 43 items and also promised to intervene in the FX market from “time to time”.
The apex bank had in 2015 restricted the items from accessing FX from the I&E window, saying they were not valid for foreign exchange and could be produced in the country. Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others.
But weeks ago, the apex bank in a statement said, “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.
“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”
