The Central Bank of Nigeria (CBN) has announced on Friday, April 16, 2021 its plans to soon ban importers of sugar and wheat from accessing Nigeria’s formal foreign exchange markets.
In a tweet announcing the imminent policy, the CBN announced that Nigerians need to work to certify these food items are produced locally.
What this means when implemented is that wheat and sugar importers won’t be able to fount for foreign exchange from the Nigerian foreign exchange market to bring these items into the country anymore.
Therefore, those who are into the business of wheat and sugar importation will have to get it for a higher price in a black market.
So instead of getting FX at the official rate of let’s N320, they will have to get at whatever price it is given at the black market.
This makes the prices of the items and its derivatives in retail markets costlier than usual.
Staple foods such as bread, flour, noodles, biscuits, cakes, pastries, seasoning, and many more are made from wheat and sugar, and this could rise in the coming days once the policy is implemented.
But The Big Question Is, Can This Really Be Effective?
In 2015, CBN announced such restriction on a number of items including Rice, Cement, Margarine, Palm kernel, Meat, and processed meat products, Vegetables and processed vegetable products, Poultry – chicken, eggs, Turkey, Private airplanes/jets, Indian incense, Tinned fish in sauce (Geisha)/Sardines, Cold rolled steel sheets, Galvanised steel sheets, and many others, noting that it would help conserve foreign exchange and encourage local production.
While the whole idea behind the CBN’s initiative is for the country to produce most of what it consumes.
The question that remains among the economist and the citizens is Can Nigeria Actually Produce These Food Items That Are Listed By The CBN On The FX Restriction?
Good Move Or Not – What Do You Think About CBN Restricting Importation Of Sugar And Other Food Items Listed Above?
Drop your comments
Written By:- Adeluola Samson