Impacts of restricted 41 items in CBN forex window serially killing ports—LCCI
Since the removal of 41 items from access to foreign exchange announced by the Central Bank of Nigeria (CBN), activities at all Nigerian seaports have ebbed and the scenario is serially shocking revenue generation on the part of government and job loss on port players.
In a recent interview with the Director, Research and Advocacy, Lagos Chamber of Commerce and Industry (LCCI), Mr. Vincent Nwani, he argued that “There must be an urgent review of the CBN’s policy on the restriction of access to foreign exchange placed on 41 items, as about 16 of the total items in the list, serve as critical raw materials for intermediate goods produced in Nigeria, especially as the country lacks the capacity for optimal production of the items.”
Since the introduction of the policy, LCCI and the Manufacturers Association of Nigeria (MAN) had continued to raise alarm that the decision is hurting the manufacturing sector.
Already, several companies have closed shops or relocated to Ghana and other neighbouring countries.
Also, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said the drop in imports is directly related to the CBN foreign exchange policy, which he said needs to be reviewed.
Nwani further disclosed that the policy has also led to drastic reduction in the volume of cargoes handled at Nigerian ports, with affected port terminals losing about 60 per cent of their cargoes to the CBN restriction policy.
Only recently, the Chairman, Senate Committee on Customs and Excise, Senator Hope Uzodinma said the upper legislative chamber would review some of the country’s trade policies including the contentious hike in tariff of some imported goods.
The law maker was of the view that most of the country’s policies are anti-trade, favouring only neighbouring countries. He said 85 per cent of cargoes landed in Cotonou Port, Benin Republic; find their way into the Nigerian market.
Addressing stakeholders in Lagos recently, the Senator representing Orlu Zone of Imo State said “We have seen that some of the trade policies are skewed and they are favouring more foreigners than Nigerians. We want the opposite to be the case and in doing that, we will change some of the policies that have not helped local empowerment”.
