The Central Bank of Nigeria (CBN) has directed all authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country. This directive is contained in a notice that was addressed to authorised dealers and signed by Dr O.S Nnaji, CBN’s Director in charge of Trade and Exchange Department.
In the notice which was made available to the public earlier today, the CBN noted four main reasons for the directive to discontinue maize importation, The reasons are:
- To increase local production
- To stimulate a rapid economic recovery
- To safeguard rural livelihoods
- To increase jobs
In line with this development, all the authorised dealers have been told to return all the Forms M they have already registered for the purpose of importing maize. They are to return the forms on or before Wednesday, July 15, 2020. The notice by the CBN said:
“As part of efforts by the Central Bank of Nigeria to increase local production, stimulate a rapid economic recovery, safeguard rural livelihoods, and increase jobs which were lost as a result of the ongoing COVID-19 pandemic, Authorised Dealers are hereby directed to discontinue the processing of Forms M for the importation of Maize/Corn with immediate effect.
“Accordingly, all Authorised Dealers are hereby requested to submit the list of Forms M already registered for the importation of Maize/Corn using the attached format on or before the close of business on Wednesday July 15, 2020. Please ensure strict compliance.”
What this means: Recall that in June 2015, the CBN issued a circular containing a list of 41 imported goods and services that were banned from accessing Nigeria’s official Foreign Exchange Market. A Nairametrics report at the time had noted that the ban was another hard-line position taken by the apex bank to keep control of the demand of the dollar to as low as it possibly can.
Over the years, the CBN has been modifying this list by including more items. The addition of maize/corn, which is a widely-consumed staple food in the country, is the latest modification.
It should be noted that cereals (which include maize and other assorted grains) make up Nigeria’s top ten imports. In 2019 alone, the country spent about $1.3 billion on cereals importation, according to World’s Top Export.
You may see a copy of the CBN notice along with ‘the attached format’ by clicking here.
Great policy to create jobs/wealth but hope adequate majors are taken to prevent price hike:like supply from reserve into market.
A reputable news outlet should quit using lines such “discontinuing maize importation” when the directive is merely precludes maize importers from accessing the CBN FX Window, but does not ban or other discontinue the importation of maize into Nigeria.
Laudable as it may be , Government should ensure that there is the will to build silos in each local government and ward areas in the country boy n preparedness for bountiful harvest of local grains.
Please does this exclusion of Maize from the CBN FX include finished goods products which are maize derivatives like Custard, Maize Porridge, Corn Starch and Corn Flakes?