By Ibrahim Danladi
The recent decision by the Central Bank of Nigeria (CBN) to lift the ban on foreign exchange for 43 items has raised concerns about its potential impact on the local economy, according to a warning from Sada Soli, a member of the House of Representatives. The announcement came during a session on Tuesday in the House of Representatives.
In response to this development, the House has extended an invitation to the Governor of the Central Bank of Nigeria, Yemi Cardoso. This invitation follows the CBN’s decision to remove the foreign exchange ban on items including fertilizers, cement, toothpicks, and 40 other commodities. It is worth noting that these 43 items were originally restricted from accessing forex at the official market rate in 2015.
The CBN’s decision to lift the ban comes amid increased volatility in the foreign exchange market, which is due to the consolidation of all trading windows into the investors’ and exporters’ window, the official FX market, under President Bola Tinubu’s administration. The CBN emphasized the need to reference prevailing Foreign Exchange (FX) rates from platforms like the CBN website, FMDQ, and other recognized or appointed trading systems to promote transparency and credibility in FX rates, according to a statement issued by its Director of Corporate Communications, Isa AbdulMumin.
There are concerns, however, that this new policy may not significantly benefit the Nigerian economy and that “middlemen” could exploit it for their own gain.
During the discussion, Jesse Onuakalusi, a lawmaker representing Oshodi/Isolo II Federal Constituency, Lagos State, called for an immediate reversal of the policy until the House concludes its legislative action on the matter. However, this proposal was rejected by fellow lawmakers.
An amendment to the motion, proposed by Kingsley Chinda, representing Obio/Akpor Federal Constituency, Rivers State, suggested that Cardoso should appear before the House Committee on Regulatory Banking, Finance, and Customs to explain the rationale behind lifting the ban, and this proposal was subsequently adopted.