- CBN Includes Cotton, Textile in FX Restricted Items
The Central Bank of Nigeria on Tuesday included cotton and textiles in the list of goods that their importers can’t access foreign exchange directly from the apex bank.
CBN Governor, Mr Godwin, who was at a stakeholder meeting in Abuja on Tuesday, said the decision is to revive local sectors and enhance job creation.
He said the strategy is to make it hard for importers of clothing materials to import by denying them access to foreign exchange at the official rate.
Earlier this year, the apex bank had said it may increase the foreign exchange restriction list from 42 items to 50 to further boost local production and stimulate the local export market.
Emefiele said by the time we add savings from the restricted “42 items that we have, which certainly we are going to increase from 42 may be to 50 or more in due course because we are going to get more aggressive in ensuring that more and more food items that are being imported into this country are added into the FX restriction list,” the governor said while visiting Dangote’s refinery.
Since importers of rice were added to the list, Nigeria rice production has surged to 4 million tonnes per annual, the largest rice producer in Africa.
Also, the restriction has aided the sugar industry as local sugar production grew by 101 per cent despite flood challenges.
To sustain economic growth and reduce high unemployment rate from 23.1 per cent (20.9 million people), more businesses most be compelled to produce locally.