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| Godwin Emefiele |
The Central Bank of
Nigeria, CBN, Wednesday, said that importers of rice, cement and other products
will no longer access Foreign Exchange from CBN, banks and bureaux de change
for such importation.
CBN Governor, Mr Godwin
Emefiele, disclosed this at a news conference in Abuja. He said that the
measure would prevent further depletion of the country’s foreign reserve.
According
to him, the country was spending huge amount to import things that could be
produced locally. The CBN will therefore not continue to support the
importation of such items through the use of the hard earned foreign exchange.
Some
of the products highlighted by the apex bank include margarine, palm kernel,
palm oil products, meat and processed meat products, vegetables, Indian
incense, tinned fish, galvanised steel sheet, roofing sheet and furniture.
“Importers
who may want to continue importing these goods would have to sort their foreign
exchange from their own private sources. The CBN will continue to be vigilant
around this policy, keep reviewing the list of items as it becomes comfortable
that these items can be produced locally if we apply ourselves sufficiently.”
The
Governor said the CBN was forced to come up with the new policy to exclude
importers of rice and 40 other items from the foreign exchange market in order
to save the nation’s economy.
“We
will not make foreign exchange available to such importers from any market. If
you read that circular, it said ‘from Nigerian foreign exchange markets’,
plural not singular. Foreign exchange will not be provided by the
Central Bank of Nigeria, the banks or by bureaux de change. If we find people
flouting it, luckily these people we have mentioned are under our regulation,
we know how to deal with them.
“Sometimes,
policy changes are forced on policymakers as a result of exogenous shocks
beyond their control. While most people do not like to be forced to do
something, one of the hallmarks of effective policymaking is to be nimble and
responsive when such situations arise.
“In
the case of yesterday’s (Tuesday) announcement, I am happy to inform and
underscore that this policy change is in line with my long-held believe that
Nigeria cannot attain its true potentials by simply importing everything. At
some point, we have to all decide what we really want for our country, and I
believe that the time is now right for that deep and honest conversation.”
He
added that CBN’s analyses of the nation’s economic situation “compelled us to
believe that we needed to aggressively begin the process of feeding ourselves
by ourselves and producing much of what we need in this country.”
According
to him, “most of you are aware of the often-quoted number of N1.3 trillion,
which is what we spend on average importing rice, fish, sugar, and wheat every
year.
“I
am saying it is shameful that we have to import toothpick. I am saying
that it is shameful for us to import fish in sauce canned, fish in sauce and
sardine. I am saying it is shameful. Before I was born palm kernel was taken
out of Nigeria and taken to another country and today we go to that country and
import palm oil. It is shameful.
“It
is shameful that items that we used to produce in this country we now begin to
import them. It is shameful and we need to stop them. That is what we are
saying.
“Only
last week, I met the Governor of Kebbi State and he lamented the unfortunate
situation in that state. Where people, our own farmers, have committed
themselves to producing rice and have produced paddy and we have paddy glut in
Kebbi State today.
“As
I speak, the government has spent its money buying paddy from the rice farmers,
almost close to 200,000 of paddy rice.
“Aside
from that, Kebbi State farmers have un-purchased paddy rice close to 800,000 tons.
And yet we patronise imported rice. For our benefits, those rice imported to
the country are those that have spent at least seven years in their stores and
yet we have rice that is produced today in Nigeria and we are running away from
them.
“The
only way we can encourage people who are producing rice to go back to the farms
is to do what we have done today.
“How
can we keep complaining about the depreciation of the naira when all we do as a
people is to import everything from ordinary Geisha and toothpicks to even
eggs? These are some of the fundamental reasons behind the bank’s recent
announcement.”
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