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Lawmaker Faults CBN’s Forex Ban Lift

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A member of the House of Representatives, Sada Soli, has warned that the lifting of the ban on foreign exchange on 43 items by the Central Bank of Nigeria may ruin local economy.

He gave the warning on the floor of the House of Representatives on Tuesday.

However, the Nigeria Employers Consultative Forum disagreed with the lawmakers on the new CBN policy, saying the importation of the 43 items was not banned in 2015.

It explained that the foreign exchange ban was placed on the items. This, it added, put pressure on the forex market, adding that the new CBN policy would benefit the nation.

The House invited the Governor of the CBN, Yemi Cardoso, to appear before it, following the apex bank’s decision to lift the foreign exchange ban on fertilizer, cement, toothpick and 40 other items.

It was earlier reported that the 43 items were in 2015 restricted from accessing forex at the official market rate.

CBN’s sudden decision to lift the ban came against the backdrop of high volatility levels experienced in the foreign exchange market owing to the unification of all trading windows into the investors and exporters’ window (the official FX market) by the President Bola Tinubu administration.

It would be recalled that the apex bank had in a statement issued by its Director of Corporate Communications, Isa AbdulMumin, said, “The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.”

At a plenary session on Tuesday, the Green Chamber passed a resolution to summon the CBN Governor following the adoption of a motion of urgent public importance sponsored by Soli, a member of the House representing Jibia/Kaita Federal Constituency, Katsina State on the platform of the All Progressives Congress.

Justifying the significance of the motion, Soli said the decision of the apex bank may lead to the closure of factories and ultimately erode the nation’s capacity to build the local economy.

In his words, it was doubtful if the new policy would make any meaningful impact on the Nigerian economy. He said ‘middlemen’ may take undue advantage of it for their own good.

Contributing to the motion, a lawmaker representing Oshodi/Isolo II Federal Constituency, Lagos State, Jesse Onuakalusi, called for the immediate reversal of the policy until the House concluded a legislative action on the matter; a prayer that was rejected by the lawmakers.

An amendment to the motion by Kinglsey Chinda, representing Obio/Akpor Federal Constituency, Rivers State, said that the CBN Governor should appear before the House Committee on Regulatory Banking, Finance and Customs to explain the rationale behind the lifting of the ban was thereafter adopted.

Image courtesy of Madukwe Nwabuisi - ApplesBite International Magazine
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Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.

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