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In a significant move, the Central Bank of Nigeria (CBN) has lifted the eight-year ban on 43 items that were previously restricted from accessing foreign exchange, according to Business Insider Africa. This decision comes as a response to the challenges faced by importers who had to resort to the black market for foreign exchange, often at rates higher than the official ones.
In June 2015, the Central Bank declared 41 items as “Not Valid for Foreign Exchange”, asserting that these items could be produced domestically rather than imported. The rationale behind this policy was to conserve foreign reserves, stimulate domestic industries, and create more employment opportunities. Over the years, the list expanded to include two more items in 2018 and 2020.
Despite these measures, Nigeria grappled with a significant foreign currency shortage. This led to the Naira plummeting to historic lows, especially in the unofficial market. The Naira's depreciation was evident in both the unofficial and official markets.
It's crucial to note that an item on this list doesn't signify an outright ban on its importation. Instead, these items were restricted from accessing forex through the official investor and exporter window.
Some items that had been restricted include Rice, Head Pans, Furniture, Cement, Metal Boxes and Containers, and Toothpicks.
This decision by the CBN is of paramount importance to Nigerians as it aims to ease the economic pressures faced by businesses and consumers alike. For the global community, it signifies Nigeria's commitment to fostering a conducive business environment and ensuring economic stability.
