FG reverses ban on rice, gas cylinder, cement 40 others imposed by Buhari

By Ezurike Ugochukwu

The foreign exchange ban on the importation of rice, cement, gas cylinders, margarine and 39 other items by the former President Mhammadu Buhari’s regime on his assumption of office eight years ago has been lifted.

The Central Bank of Nigeria(CBN) while making the disclosure on Thursday said it will henceforth start selling dollars “from time to time” thereby lifting the ban on Forex for the 43 items from accessing Forex from the apex bank.

In a statement signed by CBN’s Director of Corporate Communications, Dr. Isa AbdulMumin, said this is a significant change to the foreign exchange market policy.
The action it said will boost liquidity in the Nigerian Foreign Exchange Market and intervene from time to time, stating that interventions will decrease as liquidity improves.

In a circular in June 2015, the CBN published a list of imported goods and services that will not be eligible for foreign exchange in the Nigerian foreign currency market. The list which was originally 41 was updated to include two more items.
The central bank’s decision to lift the ban on the 43 items seems to signify a major step in resolving Nigeria’s forex crisis as most critics had called on the CBN under Emefiele to lift it.

The central bank’s decision to intervene in the forex market suggests it is now ready to provide a steady supply of forex in the official market, a situation that could strengthen the exchange rate at the black market.

Worthy of note, some of the items remain on the ban list of customs and it is unclear if they will be funded for forex purchases.

It is also unclear where the central bank will find forex to fund the demand considering its external reserve position already stretched.

The items in the list include: Palm kernel, Palm oil products, Vegetable oils, Meat and processed meat products, Vegetables and processed vegetable products, Poultry and processed poultry products, Tinned fish in sauce (Geisha)/sardine, Cold rolled steel sheets, Galvanized steel sheets.

Other items are: Roofing sheets, Wheelbarrows, Head pans, Metal boxes and containers, Enamelware, Steel drums, Steel pipes, Wire rods (deformed and not deformed), Iron rods, Reinforcing bars, Wire mesh, Steel nails, Security and razor fencing and poles, Wood particle boards and panels, Wood fiberboards and panels, Plywood boards and panels, Wooden doors, Toothpicks, Glass and glassware, Kitchen utensils, Tableware, Tiles-vitrified and ceramic, Gas cylinders.

Plastic and rubber products, Polypropylene granules, Cellophane wrappers and bags, Woven fabrics, Clothes, Soap and cosmetics, Tomatoes/tomato pastes, Eurobond/foreign currency bond/ share purchases.

Former President Buhari handing over to President Tinubu

It could be recalled that for the last eight years of the former administration of Mohammadu Buhari, the 43 items were banned from accessing Forex from the CBN for importation. A situation that has further worsened the country’s economy.