Business
Restrictions on 43 Items: It’s a Policy Mistakes As It Falls outside CBN’s Mandates- Cardoso

By Ocheneyi Alli
The Central Bank of Nigeria (CBN) has given fresh reasons it removed the restriction on 43 items that can be produced in Nigeria, from accessing foreign exchange, saying it’s trade policy which falls outside its mandates.
Olayemi Cardoso, CBN Governor, said: “It is important to note that trade policy is
primarily the responsibility of the fiscal authorities, and delving into such matters falls outside the purview of the CBN.”
He made the clarification during the Chartered Institute of Bankers of Nigeria (CIBN) 58th Annual Bankers’ Dinner and Grand Finale of the Institute’s 60th Anniversary.
He said: ” Allow me to provide further clarification on the issue of the 43 items.
First, it is important to note that these items were never outrightly banned by the government.
The CBN had imposed restrictions on their access to foreign exchange in the official market.
However, these restrictions resulted in increased demand for foreign exchange in the parallel market, leading to the depreciation of the exchange rate in that segment of the Nigerian Foreign Exchange Market (NFEM) and widening the premium between the parallel and official market.
Studies have shown that during the period when the 43
items were restricted, there was a 51.0% increase in trade evasion by importers accessing the foreign exchange market, resulting in a revenue drop of approximately US$1.4 billion, or US$275 million annually, between 2015 and 2019.
Affects Revenue Tariffs on Goods
Additionally, revenue from tariffs on goods decreased from a high of approximately US$920 million in 2011 to about US$250 million in 2017.
In 2019, the actual tariff on goods stood at US$320 million, but counter factual evidence suggests that as much as US$680 million could have been earned in the same year.
Furthermore, evidence has shown that foreign exchange restrictions had an adverse impact on Nigerian households and contributed to inflationary pressures.
The reduction in trade restrictions and levies on rice,sugar, and wheat by 50.0% had only a minimal impact on welfare, with a 0.8%
improvement, and a mere 0.4% reduction in extreme poverty.
Moreover, the benefits of trade gains for the general population
were negligible, as the average industry in Nigeria pays 13.7% more for its inputs.”
Manufacturers Apprehensive
However, local manufacturers are not happy with the removal of the ban on the 43 items, fearing that it is capable of collapsing many industries very soon.
The Vice Chairman of Basic Metal, Iron and Steel Products sector of the Manufacturers Association of Nigeria (MAN), Mr. Lekan Adewoye, has advised the Federal Government to urgently reverse its decision to remove ban on 43 items on foreign exchange restriction by the Central Bank of Nigeria, (CBN).
Lack of consultation with MAN
Adewoye, totally condemned the new CBN policy , asserting “This directive will further kill the manufacturing industry that is already struggling to survive.
” The problem is about policy somersaults., some of our members who have outrightly invested in backward integration will now start to regret this move because everyone who can assess FOREX will claim to be an importer, forcing sincere manufacturers to
close shop and increasing the numbers of jobless persons.”
He laments further: ” “Lack of consultation, I can speak for manufacturers because we always try our best to engage the government on some critical issues and decisions, but when some of these decisions are being taken, manufacturers are not being consulted.
“Even when the 43 items were put on the restriction list, there was no consultation. It was just at the end of the day, we felt that to a reasonable extent, the decision were in the interest of manufacturers, but there were a couple of items on that list, that some manufacturers use at that time, some of those manufacturers were also affected and government is taking a decision to remove the entire items on that list without proper consultation with the Manufacturers Association of Nigeria, (MAN) to even have an idea of what effect will this have on their businesses.
“I want to assure you that many industries will shutdown very soon and this will lead to lost of jobs and insecurity will be alarming in the country. Nigeria has all it needs to produce Iron Rods and other items on this list, opening up the market will be a disincentive to manufacturers that continue to put their resources and investment into growing the industry.”
Dr. Abubakar Aliyu, an ex Director-General of the Raw Materials Research and Development Council (RMRDC) , amplifies Mr. Adewoye’s concerns and said: About two months ago, CBN woke up and said that 43 items it restricted can now access foreign exchange.
This will greatly affect the MAN members companies .
He encouraged the leadership of MAN and the RMRDC to strongly engage the Federal Government on the issue , because, it will seriously affect the performance of the sector .
Background
CBN, had in a circular in June 2015, published a list of imported goods and services that will not be eligible for foreign exchange in the Nigerian foreign currency market.
The list which was originally 41 was updated to include two more items.
Below were the list of the items:
1. Rice
2. Cement
3. Margarine
4. Palm kernel
5. Palm oil products
6. Vegetable oils
7. Meat and processed meat products
8. Vegetables and processed vegetable products
9. Poultry and processed poultry products
10. Tinned fish in sauce (Geisha)/sardine
11. Cold rolled steel sheets
12. Galvanized steel sheets
13. Roofing sheets
14. Wheelbarrows
15. Head pans
16. Metal boxes and containers
17. Enamelware
18. Steel drums
19. Steel pipes
20. Wire rods (deformed and not deformed)
21. Iron rods
22. Reinforcing bars
23. Wire mesh
24. Steel nails
25. Security and razor fencing and poles
26. Wood particle boards and panels
27. Wood fiberboards and panels
28. Plywood boards and panels
29. Wooden doors
30. Toothpicks
Glass and glassware
32. Kitchen utensils
33. Tableware
34. Tiles-vitrified and ceramic
35. Gas cylinders
36. Woven fabrics
37. Clothes
38. Plastic and rubber products
39. Polypropylene granules
40. Cellophane wrappers and bags
41. Soap and cosmetics
42. Tomatoes/tomato pastes
43. Eurobond/foreign currency bond/ share purchases.
Business
How were Donald Trump’s tariffs calculated?
In total, more than 100 countries are covered by the new tariff regime.

Charts credit: White House/ BBC Verify
US President Donald Trump has imposed a 10% tariff on goods from most countries being imported into the US, with even higher rates for what he calls the ”worst offenders”.
But how exactly were these tariffs – essentially taxes on imports – worked out? BBC Verify has been looking at the calculations behind the numbers.
What were the calculations?
When Trump presented a giant cardboard chart detailing the tariffs in the White House Rose Garden it was initially assumed that the charges were based on a combination of existing tariffs and other trade barriers (like regulations).
But later, the White House published what might look like a complicated mathematical formula.


But the actual exercise boiled down to simple maths: take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.
A trade deficit occurs when a country buys (imports) more physical products from other countries than it sells (exports) to them.
For example, the US buys more goods from China than it sells to them – there is a goods deficit of $295bn.
The total amount of goods it buys from China is $440bn. Dividing 295 by 440 gets you to 67% and you divide that by two and round up. Therefore the tariff imposed on China is 34%.
Similarly, when it applied to the EU, the White House’s formula resulted in a 20% tariff.
Are the Trump tariffs ‘reciprocal’?
Many commentators have pointed out that these tariffs are not reciprocal.
Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers (things like regulations that drive up costs).
But the White House’s official methodology document makes clear that they have not calculated this for all the countries on which they have imposed tariffs.
Instead the tariff rate was calculated on the basis that it would eliminate the US’s goods trade deficit with each country.
Trump has broken away from the formula in imposing tariffs on countries that buy more goods from the US than they sell to it.
For example the US does not currently run goods trade deficit with the UK. Yet the UK has been hit with a 10% tariff.
In total, more than 100 countries are covered by the new tariff regime.‘
Lots of broader impacts’Trump believes the US is getting a bad deal in global trade.
In his view, other countries flood US markets with cheap goods – which hurts US companies and costs jobs.
At the same time, these countries are putting up barriers that make US products less competitive abroad.So by using tariffs to eliminate trade deficits, Trump hopes to revive US manufacturing and protect jobs.
But will this new tariff regime achieve the desired outcome?
BBC Verify has spoken to a number of economists. The overwhelming view is that while the tariffs might reduce the goods deficit between the US and individual countries, they will not reduce the overall deficit between the US and rest of the world.
“Yes, it will reduce bilateral trade deficits between the US and these countries.
But there will obviously be lots of broader impacts that are not captured in the calculation”, says Professor Jonathan Portes of King’s College, London.
That’s because the US’ existing overall deficit is not driven solely by trade barriers, but by how the US economy works.For one,
Americans spend and invest more than they earn and that gap means the US buys more from the world than it sells. So as long as that continues, the US may continue to keep running a deficit despite increasing tariffs with it global trading partners.
Some trade deficits can also exist for a number of legitimate reasons – not just down to tariffs. For example, buying food that is easier or cheaper to produce in other countries’ climates.
Thomas Sampson of the London School of Economics said: “The formula is reverse engineered to rationalise charging tariffs on countries with which the US has a trade deficit.
There is no economic rationale for doing this and it will cost the global economy dearly.”
Business
CBN denies introducing N5000, N10,000 notes

The Central Bank of Nigeria, CBN, has denied introducing new N5,000 and N10,000 notes.
CBN described the reports as false.
There has been widespread reports that the CBN had unveiled the high-denomination bank notes to enhance cash transactions.
The report said the apex bank was set to introduce the new notes to reduce cash-handling costs and improve liquidity management.
Some of the reports attributed the introduction of the new notes to a supposed Deputy Governor, Dr Ibrahim Tahir Jr.
It was reported that the new notes would be released from May 1, 2025.
However, posting the reports on its X page, the CBN wrote: “This content is NOT from the Central Bank of Nigeria.
Kindly note that the official website of the CBN is cbn.gov.ng.”
Business
Italy Funding Africa’s coffee industry with €15 million
The UNIDO Director -General, Gerd Müller, emphasized the urgency and significance of the partnership, stating: “Around 125 million people worldwide depend on coffee for their livelihoods.

Image credit: The Expressowork
The government of Italy is making €15 million available to the United Nations Industrial Development Organization (UNIDO) for the promotion of sustainable coffee production in Africa.
The funding arrangement was signed recently by Debora Lepre, the Ambassador and Permanent Representative of Italy to the International Organizations in Vienna, and the UNIDO Director- General, Gerd Muller.
Ambassador Lepre expressed Italy’s commitment to supporting sustainable agriculture and economic resilience, stating: “The signing of this funding arrangement marks an important milestone in our long-standing collaboration with UNIDO and aims to trigger a chain reaction to attract other partners and investments, promoting a new paradigm of development cooperation as a partnership between equals.”
The UNIDO Director -General, Gerd Müller, emphasized the urgency and significance of the partnership, stating: “Around 125 million people worldwide depend on coffee for their livelihoods.
This programme will help to improve the lives of the people at beginning of the coffee supply chain. Better jobs and better incomes for families and communities. I am very grateful to the Government of Italy and to all of our other partners in this initiative. Transforming Africa’s Coffee Sector: UNIDO and Italy Drive Climate-Resilient Solutions.”
Coffee remains one of the world’s most important cash crops deeply embedded in our cultures and economies, sustaining over 12.5 million farms globally.
In Africa, coffee accounts for approximately 12% of the global production.
Coffee plays a fundamental role, representing a source of foreign currency, tax income generation, and jobs in both producing and consuming countries.
Despite the increasing global demand for coffee, the sector faces mounting challenges, including climate change, fluctuating global prices, and regulatory pressures, all of which threaten the livelihoods of millions of smallholder farmers.
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