The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has promised to sustain FX restrictions on the importation of food items that can be produced locally.
He promised to get even get more aggressive and continue with the drive of diversifying the economy, especially as similar policy initiated by the apex bank yielded a positive result.
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This is according to an official video posted by the apex bank via its official Twitter account.
What they are saying
Commenting on the initiative to cut food importation in Nigeria, Mr. Emefiele said, “The Central Bank of Nigeria will get even more aggressive to see to it that food – any or all food items that can be produced in Nigeria and consumed in Nigeria, but currently being imported into Nigeria, are placed on the FX restriction list. Once, we go through our records, and convince ourselves that these products can be produced in Nigeria, the restriction will be effected’’
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What this means
The implication of this initiative when implemented is that you cannot source foreign exchange from the Nigerian FX market to import these items into Nigeria.
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Why it matters
The initiative is part of the present regime’s policy on diversifying the economy and reducing over-reliance on imports. It can also go a long way to ensure domestic food security by minimizing external risks and help the government to save foreign exchange that would have been used for importation. It will help protect local industries and create more jobs through the process.