Some experts express mixed feelings about the impact of the CBN policy on the state of food security in the country.
“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market,” a statement signed by Isa AbdulMumin, the CBN’s director of corporate communications, said.
Subsequently, amidst efforts to achieve its backward integration policy on key items, the central bank added fertiliser and maize/corn to the list of items. While the CBN’s decision to lift the ban on the 43 items signifies a major step in resolving the country’s forex crisis, experts have also registered mixed feelings about the impact of the removal on the state of food security in the country.Reacting to the CBN’s removal of the forex restrictions on the 43 items, Dairy Hills Limited Chief Executive Officer, Kelvin Emmanuel, described the initiative as a “good development”.
He explained that the CBN needs to also work on rebalancing the encumbrances on the external reserves for FX swaps to banks as well as securities lending done with External Asset Managers to the apex bank without approval from the National Assembly. “Nigeria has been striving to achieve self-sufficiency in food production, and by easing the FX ban, there’s a possibility that the agriculture sector might not receive the same level of support it needs to thrive,” he said.
Mr Fatai said importers of food items like rice and cooking oil may still rely on the parallel market for dollars, maintaining price pressure. He explained that to genuinely benefit households, complementing the CBN policy with a reduction in import tariffs on these vital food products could pave the way for price reductions.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nigeria, South Africa Take Lead As Biggest Participants In Africa's Online Retail Forex TradeDespite currency fluctuations and macro-economic shocks across Africa, emerging reports show that Nigeria and South Africa, the two largest economies in
Read more »
No respite for Nigerians as petrol scarcity bites harder in Abuja, Lagos, othersThe scarcity of Premium Motor Spirit (PMS), popular known as petrol, which again, resurfaced in some parts of the country, noticeably Abuja and Lagos, yesterday, may have further compounded the woes of Nigerians, who are currently battling lack of healthy diet due to rising inflation, forex challenges to do business, poor electricity supply amidst...
Read more »
Farmers Still Struggling Despite FG’s Emergency DeclarationThree months after President Bola Tinubu declared a state of emergency on food security in Nigeria, the farmers who produce food for Nigeria are still facing
Read more »
Food Security: FAO, CGIAR counsel govt, farmers to transform food systemAs activities continue to mark 2023 World Food Day, WFD, the Food and Agriculture Organisation, FAO, Nigeria, and the Consortium of International Agricultural Research Centers, CGIAR, Thursday, counseled the Nigerian Government and farmers to transform the food system in order to tackle nutrition, climate change and population growth challenges.
Read more »