Fertilizer

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Fertilizer joins forbidden items not valid for forex

Fertilizer joins forbidden items not valid for forex

The Central Bank of Nigeria has announced the inclusion of fertilizer in the list of 41 items not valid for forex. By this decision it therefore means that foreign exchange can no longer be sourced from the window for the purpose of importation of agricultural fertilizer.

Last week, the Central Bank Governor, Godwin Emefiele announced the intention of the apex bank to include some items to the existing list of the 41 items forbidden already.

It then stands that with this development, we now have 42 items forbidden from sourcing FX, from the direct window for the soul aim of importation.

In CBN’s document dated December 10, 2018 as signed by the Director, Trade and Exchange Department, CBN, Ahmed Umar contained the notification.

The CBN had in July 2015, listed and restricted 41 items from accessing foreign exchange from the inter bank foreign exchange market.

In a recent letter the apex bank explained “In the continued effort to sustain the achievement recorded from the classification of the 41 import items as not valid for forex, in the Nigerian FX market, authorized dealers and general public are hereby notified of the inclusion of “Fertilizer” on the list effective Friday December 7, 2018.

All Form M’s on fertilizer which payments are outstanding will be settled at the appropriate settlement dates.

However, in a letter to this effect to the banks dated December 10, 2018, the Director, Financial Policy and Regulation Department, Mr Kevin Amugo, explained that the decision to restrict forex to the 41 items in 2015, had led to employment generation and inclusive growth in the country.

“Unfortunately trade information available to CBN indicates that there is circumvention of the policy as the restricted items are being dumped in the country.

The implication however is the growth and employment benefits that was obtained from this policy may be eroded if not properly checked.

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“We are glad with the accomplishments recorded so far. Accordingly, this policy is expected to continue with all vigor until the underlying imbalances within the Nigerian economy have been fully resolved.

BELOW ARE NOW 42 ITEMS NOT VALID FOR FOREX

Rice, Cement, Margarine, Palm kernel oil products vegetable oils, Meat and processed meat products, Vegetable and processed vegetable products, Poultry – Chicken eggs Turkey, Private airlines Jets, Indian incense, Tinned Fish in sauce, Cold Rolled Steel Sheets, Galvanized Steel Sheets, Roofing Sheets, Wheelbarrows, Head Pans, Metal Boxes and Containers, Enamelware, Steel Drums, Steel Pipes, Wire Rods, Iron Rods and Reinforcing Bars, Wire Mesh, Steel Nails, Security and Razor Wire, Wood Particle Boards and Panels, Wood Fiber Boards and Panels, Plywood Boards and Panels, Wood Doors, Furniture, Toothpicks, Glass and Glassware, Kitchen Untensils, Tableware, Tiles Verified and Ceramics, Textiles, Women Fabrics, Clothes, Plastic and Rubber Products, Soap and Cosmetics, Tomatoes Tomatoes Paste, Euro bond foreign currency bond and Fertilizer.

WHY THE BAN ON THESE “42” ITEMS?

The essence of ban on these items is to encourage local production of these goods here in Nigeria. It will improve industrialization just like we’ve already seen huge and massive investment in these areas in the last three years.

These goods are now being produced locally, which had as well provide employment for Nigerians while stimulating the economy positively in a much expected direction.

In the area of agriculture, we now have home grown rice, with more investors taking the opportunity of the market available to produce foods in commercial quantities. Maintaining this tide will create employment for a better Nigeria.

Image source: Getty image

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