shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Mixed Reactions Trail Federal Government’s Decision To Discontinue Forex Exclusion Policy on 41 Items

Mixed Reactions Trail Federal Government’s Decision To Discontinue Forex Exclusion Policy on 41 Items

By Oluyinka Onigbinde

by Joshua
October 23, 2023
in Featured, News

Following the decision of the Federal Government to discontinue the forex exclusion policy on 41 items, a wide range of reactions from stakeholders have emerged, underlining the complexity of the economic and political implications of this significant policy shift.

Recall that the Central Bank of Nigeria (CBN) recently lifted the foreign exchange restrictions it placed on importers of 43 items about eight years ago.

The CBN had in the statement signed by its Director of Corporate Communications, Dr. Isa AbdulMumin,  said this is a significant change to the foreign exchange market policy.

According to the apex bank, the action will boost liquidity in the Nigerian foreign exchange market and intervene from time to time, stating that interventions will decrease as liquidity improves.

However, following the decisions, stakeholders in the nation’s maritime industry and Organised Private Sector (OPS) have expressed divergent views regarding the decision.

The Chief Executive Officer of the Center for Promotion of Private Enterprises (CPPE); Dr. Muda Yusuf welcomed the decision, viewing it as a step in the right direction; he said the decision will contribute to the normalization of economic policies.

He added that the exclusion of these items had led to distortions in the forex market, divergence in exchange rates, and was inconsistent with trade policies.  He further said the removal of the ban is a way to enhance transparency and disclosures in forex transactions, with a call for the CBN to avoid suppressing the market.

According to him, “the exclusion was in conflict with extant trade policy as the items were not under import prohibition in the first place.   It was an example of lack of policy coordination under the previous administration. The new directive will also improve transparency and disclosures in foreign exchange transactions”.

“Meanwhile, the CBN should avoid market suppression tendencies, especially outside the I and E Window.  All policy impediments to forex inflows should be removed. The fiscal authorities should continually monitor the economic landscape to shape the character of fiscal policy measures to regulate imports in line with comparative advantage principles.

“We need to worry about the risk of import surge. There is also need to upscale the use of fiscal policy measures to boost domestic production and productivity” he said.

On the other side, Mr Lekan Adewoye, Vice Chairman of the Basic Metal, Iron, and Steel Products sector of the Manufacturers Association of Nigeria (MAN), criticized the decision, urging the government to reverse it. He fears that the sudden policy reversal could lead to job losses, insecurity, and an economic collapse.

Adewoye argued that the abrupt change could hurt manufacturers who invested in backward integration and undermine the competitiveness of local industries, pointing out that a lack of consultation and policy somersaults have contributed to the industry’s challenges.

On his part, Mr Remi Ogunmefun, former MAN DG, emphasized the lack of consultation when the ban was initially introduced. He noted that the abrupt nature of the policy had negatively impacted manufacturers. While expressing uncertainty about the basis for reversing the ban, he raised concerns about the potential for increased competition for foreign exchange, which could affect the industry.

Speaking also former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto argued that the CBN should not interfere with fiscal policies and that placing restrictions on the 41 items had encouraged false declaration and reduced imports, which he believed had already dropped significantly. He advocated for an open system with no barriers to trade.

On his part, Mr John Aluya, Vice President of MAN, criticized the initial implementation of the policy, suggesting it was done without adequate analysis. He highlighted that the ban had led to a significant increase in the prices of essential goods like rice.

Aluya also pointed out that the I&E window had effectively been hijacked by banks, undermining its intended purpose.

 


Tags: CBN Forex Ban

Related Posts

Tariff Fears Drive Q1 Import Boom, Says WTO

CDS Urges Communities To Protect Pipelines

July 16, 2025
18 Years After: FG To Commence Disbursement Of $350 Million CVFF Funds With Immediate Effect 

Oyetola’s Aide,Mariners President Signpost Buhari’s Impact In Maritime Sector

July 16, 2025
Tariff Fears Drive Q1 Import Boom, Says WTO

Tariff Fears Drive Q1 Import Boom, Says WTO

July 16, 2025
Aliko Dangote Submits Paperwork To Build Nigeria’s Largest Seaport In Ogun

Nigeria Ramps Up Campaign for IMO Category C Seat, Showcases Maritime, Aviation Potential on Global Stage

July 15, 2025

Latest News

Tariff Fears Drive Q1 Import Boom, Says WTO

CDS Urges Communities To Protect Pipelines

July 16, 2025

Oyetola’s Aide,Mariners President Signpost Buhari’s Impact In Maritime Sector

Tariff Fears Drive Q1 Import Boom, Says WTO

Nigeria Ramps Up Campaign for IMO Category C Seat, Showcases Maritime, Aviation Potential on Global Stage

WCO Chairmanship: Afam Chukwuma Hails Adeniyi’s Appointment as Major Boost for Nigeria’s Customs and Economy

Aliko Dangote Submits Paperwork To Build Nigeria’s Largest Seaport In Ogun

Nigeria Customs Boss Extols Late Buhari’s Legacy Of Discipline

Vessels Expected At Lagos Ports As At 14th July, 2025

Duty-Free, But Not Trouble-Free: Mixed Reactions Trail UK’s Trade Window For Nigerian Exports

At Last, Lekki-Epe Corridor Stakeholders Agree On August 1st Enforcement Date For E-Call-Up 

Nigeria Losing Billions To Boat Importation As Indigenous Operators Urge Local Shipbuilding Drive

Court Ruling Against CRFFN’s Regulatory Powers Tears Customs Brokers Apart   

kindly like our Facebook page

Health

The Usefulness Of Watermelon Seeds You May Not Know
Health

The Usefulness Of Watermelon Seeds You May Not Know

July 14, 2025

Watermelon is one fruit that’s hard to resist when it gets too hot. It’s sweet and is high in water...

KNOW YOUR BODY PARTS: THE HEART

KNOW YOUR BODY PARTS: THE HEART

June 30, 2025
Why Your Favourite Seasoning Cubes May Be Hurting Your Kidneys

Why Your Favourite Seasoning Cubes May Be Hurting Your Kidneys

June 30, 2025
Contraceptive Pills Can’t Cause Cervical Cancer – Expert

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025
ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition