Forex Ban On Rice, Others Helped Nigeria Out Of Recession - CBN
Image: Mynairanaija

The Central Bank of Nigeria (CBN) has said the restriction of foreign exchange for the importation of 41 items helped Nigeria to beat the recession.

This came from the CBN Governor Godwin Emefiele in Abuja on Wednesday during a workshop on monetary policy implementation amidst global economic protectionism.

Advertise With Us

In 2015, the apex bank had placed the restriction on accessing forex in the official forex market for the importation of some goods and services like rice, paste, toothpicks et al.

According to Emefiele, the move and other policies of the federal government had helped in boosting the country’s foreign reserve which is at $42.46bn.

He said the move was meant to increase local production of the items, boost job creation and reduce the country’s overdependence on foreign goods.

“In today’s world, countries have used trade protection repeatedly as a policy to resolve negative perceptions and shocks in their respective countries,” the CBN boss added.

“In other words, should Nigeria, with insatiable taste for foreign goods to the detriment of the domestic economic realities, throw its borders open to indiscriminate importation of goods and services?

“This was the prevailing condition in Nigeria before the introduction of restriction of official foreign exchange for the importation of 41 items.

“The implementation of the (restriction of forex for the importation) 41 items, in addition to the other complementary macroeconomic policies, no doubt, was effective in lifting the Nigerian economy out of recession.”