By Omodele Adigun
Those thinking that the embargo on the 41 items may have been lifted were proed wrong over the weekend as the Governor of the Central Bank of Nigeria(CBN), Mr Godwin Emefiele, stated that the ban is not only in force but also canvassed their support for the policy.
According to Emefiele, the policy was not just in response to the pressure on the Naira, but also as an opportunity to change the economy’s structure, resuscitate local manufacturing, and expand job creation for the citizenry.
The apex bank boss, who stated this at the weekend in Lagos while recieving Vanguard Newspaper’s Personality of the Year Award, enjoined Nigerians to support the policy as its variants have proven to be highly effective in other climes and even in the country. He stated: “This policy was basically borne out of necessity to conserve foreign exchange. I know that no policy is cast in stone, and we may have no need for it some day in this country. But, policymakers across this country need to pay attention to global trends and ensure that they reflect upon our strategy and thinking. Given the new realities of nationalist and populist sentiments sweeping across the world (Brexit in the UK, election of Donald Trump in the US, rise of Marine Le Pen in France, and Geert Wilders’ encouraging poll numbers in the Netherlands, etc), the calls from certain quarters for a reversal of this policy is quite saddening.
“For example, throughout the early days of South Korea’s economic renaissance, the government intermittently used excessively stiff tariffs, quantitative restrictions and prohibitive inland taxes to effectively ban many items with potential for high imports, and simultaneously, offered generous and subsidized loans to firms for export promotion causes. In fact, at some point, about 93 per cent of total imports into South Korea were subject to one or more such restrictions.
“And here at home, this policy have been used to achieve significant sufficiency in cement, a product whose importation could have been costing us over US$3.2 billion in foreign reserves annually.”
On the issue of foreign exchange (forex), he assured Nigerians of the apex’s bank’s willingness, determination, and capacity to meet all legitimate foreign exchange(forex) demands, threatening to make forex speculators lose their money. He stated that the CBN would not sit idly and watch faceless criminals destroy the currency.
His words: “Let me also reiterate the central bank’s willingness, determination, and capacity to continue to meet all legitimate transaction-based FX demands in the market. I obviously cannot be of help to people or businesses who are into speculative FX demand. My promise instead to this group, whether foreign or local, is that the CBN will make sure they lose money!”
The CBN boss also took time to dress down those calling on the country to emulate Egypt and allow the free float of the Naira. “I have always had one simple question for this group of persons: name me just one country in the whole world that practises a freely floating exchange rate regime? Just one.
