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

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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.

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Business

PENGASSAN – Dangote Rift: A needless attack on private enterprise

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The Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has described the rift between Dangote Refinery and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) as unfortunate, and a needless attack on private enterprise.

He noted that the strike had far-reaching implications on residents and businesses, as factories suffered cuts in production schedules, with a hike in transportation fare.

Fielding questions from reporters at MAN House, yesterday, while announcing the association’s coming Annual General Meeting (AGM), he revealed that imported products, which were not suffering disruption, were likely to fill the gap and if the rift rears its head again, it would affect daily workers and people in the logistics value chain that rely on the products made in those factories.

Meanwhile, PENGASSAN has said it decided to suspend its two-day strike to protect the jobs of its members in Dangote Refinery.The President, Festus Osifo, explained that the union was unsatisfied with the posting of about 800 sacked staff to Dangote’s subsidiaries to prevent job loss.

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FG Spends $2.86bn on External Debts Servicing – CBN

By August 2025, debt service climbed to $302.3m, which was $22.35m or 8 per cent higher than the $279.95m of August 2024.

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The Federal Government spent a total of $2.86 billion to service external debt in the first eight months of 2025.

This was disclosed in the international payment data from the Central Bank of Nigeria.

The figure shows that external debts accounted for 69.1 percent of the country’s total foreign payments of $4.14 billion in the period.

In the same eight-month stretch of 2024, debt service stood at $3.06 billion, representing 70.7 percent of total foreign payments of $4.33 billion.

The figures show that while the absolute value of debt service fell by $198m between 2024 and 2025.

The share of debt in overall foreign payments has remained persistently high, with about seven out of every ten dollars leaving the country used to meet debt obligations.

The monthly breakdown highlights the volatility of Nigeria’s repayment schedule:

In January 2025, $540.67m was spent compared with $560.52m in January 2024, a fall of $19.85m or 3.5 per cent.

February 2025 recorded $276.73m, slightly below the $283.22m in February 2024, down by $6.49m or 2.3 per cent.March 2025 surged to $632.36m against $276.17m in March 2024, an increase of $356.19m or 129 per cent.

In April 2025, payments reached $557.79m, which was $342.59m or 159 per cent higher than the $215.20m of April 2024.

May 2025 stood at $230.92m, sharply lower than the $854.37m in May 2024, a drop of $623.45m or 73 per cent.

June 2025 rose to $143.39m compared with $50.82m in June 2024, a rise of $92.57m or 182 per cent.

July 2025 fell to $179.95m, down by $362.55m or 66.8 per cent from $542.5m in July 2024.

By August 2025, debt service climbed to $302.3m, which was $22.35m or 8 per cent higher than the $279.95m of August 2024.

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ECOWAS Bank okays $308.63m for Nigeria, Guinea

The bank gave the approval during its 93rd Ordinary Session convened at the it’s headquarters in Lomé, the Togolese capital.

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ECOWAS Bank for Investment and Development (EBID), has approved $308.631 million for the implementation of various projects in Taraba State, Nigeria, and a $40 million credit line for Vista Bank, Guinea, to bolster trade-related activities, including import-export operations and commercial value chains.

The bank gave the approval during its 93rd Ordinary Session convened at the it’s headquarters in Lomé, the Togolese capital.

President and Chairman of Board of Directors of the bank, Dr. George Agyekum Donkor, said the newly approved financing would advance strategic public and private sector initiatives, aligned with EBID’s mandate to promote sustainable development throughout the Economic Community of West African States by strengthening regional integration and fostering economic diversification.

The approved facilities include the $98.18 for a 50 MW Solar Photovoltaic Power Plant in Taraba State, Nigeria, , which will augment the supply of reliable, clean electricity to spur inclusive economic development, alleviate energy poverty, and improve environmental sustainability.

Anticipated benefits include direct electricity access for roughly 390,000 individuals, enhanced power reliability for at least 200 public institutions, the creation of 400 direct jobs during construction, and approximately 50 permanent operational roles.

The bank noted that an estimated 1,200–1,500 indirect jobs were expected to emerge across supply chains, maintenance services,and small businesses.

Another facility is the $79.219 million modern rice processing complex and 10,000-hectare irrigated rice production unit also in Taraba State.

Also included is the $91.232 million facility for Taraba State Industrial Park, an initiative conceived to accelerate local industrialisation and economic diversification through the establishment of a modern, integrated industrial ecosystem.

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