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CBN lifts ban on 43 items after eight years

The Central Bank of Nigeria (CBN) has lifted the forex ban on 43 items and has promised to intervene in the foreign exchange market from “time to time.”

The products had been prohibited from getting FX via the I&E window by the apex bank in 2015 because they were “not valid for foreign exchange and could be produced in the country.” Among the items affected are rice, cement, palm kernels, meat and meat products, poultry, soap, and cosmetics.

However, the bank’s Director of Corporate Communications, Isa AbdulMumin, said in a statement that the ban has been lifted.

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“The CBN would occasionally intervene in the Nigerian Foreign Exchange Market to increase liquidity as part of its duty to guarantee price stability. These CBN interventions would progressively decline as market liquidity increases,” according to the statement released on Thursday.

“Importers of all the 43 items formerly prohibited by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addenda are now permitted to purchase foreign exchange in the Nigerian Foreign Exchange Market.”

“The Central Bank of Nigeria (CBN) will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a willing buyer-seller principle,” the official said.

“The CBN reiterates that current Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDCQ, and other recognized or appointed trading systems to promote price discovery, transparency, and credibility in FX rates.”

“The CBN would occasionally intervene in the Nigerian Foreign Exchange Market to increase liquidity as part of its duty to guarantee price stability. The CBN will also progressively scale back its involvement as market liquidity increases.

“Creating a single FX market is one of the CBN’s objectives. To do this, market players are now being consulted,” according to CBN.

A list of imported products and services that would not be accepted for foreign exchange in the Nigerian foreign exchange market was released by the CBN in a circular in June 2015. Two more things were added to the list, which had previously had 41 items.

The objects are listed below:

  1. Rice

  2. Cement

  3. Margarine

  4. Palm kernel

  5. Palm oil products

  6. Vegetable oils

  7. Meat and processed meat products

  8. Vegetables and processed vegetable products

  9. Poultry and processed poultry products

  10. Tinned fish in sauce (Geisha) or sardine

  11. Cold-rolled steel sheets

  12. Galvanized steel sheets

  13. Roofing sheets

  14. Wheelbarrows

  15. Head pans

  16. Metal boxes and containers

  17. Enamelware

  18. Steel drums

  19. Steel pipes

  20. Wire rods (deformed and not deformed)

  21. Iron rods

  22. Reinforcing bars

  23. Wire mesh

  24. Steel nails

  25. Security, razor fencing, and poles

  26. Wood particle boards and panels

  27. Wood fiberboards and panels

  28. Plywood boards and panels

  29. Wooden doors

  30. Toothpicks

  31. Glass and glassware

  32. Kitchen utensils

  33. Tableware

  34. Tiles-vitrified and ceramic

  35. Gas cylinders

  36. Woven fabrics

  37. Clothes

  38. Plastic and rubber products

  39. Polypropylene granules

  40. Cellophane wrappers and bags

  41. Soap and cosmetics

  42. Tomatoes/tomato paste

  43. Eurobond/foreign currency bond/share purchases

Eurobond/foreign currency bond/share purchases

 

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