In order to beef up the fast depleting external reserves, the Central Bank of Nigeria on Tuesday stopped the sales of foreign exchange to importers of rice, private jets, textiles, tomato paste, poultry products and 35 other times.

The CBN, in a circular dated June 23, 2015, stated that the implementation of the policy would help to conserve foreign reserves and facilitate the resuscitation of domestic industries as well as generate employment.

The circular, which was signed by the Director, Trade and Exchange, CBN, Mr. Olakanmi Gbadamosi, stated that it was imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange market in order to encourage local production of the items.

It read in part, “In the continuing efforts to sustain the stability of the forex market and ensure efficient utilisation of forex and the derivation of optimum benefits from goods and services imported into the country, it has become imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian forex markets in order to encourage local production of these items.

“The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation.

“For the avoidance of doubt, please note that the importation of these items are not banned, thus importers desirous of importing these items shall do so using their funds without any recourse to the Nigerian foreign exchange market.”

The list of 40 items include cement, margarine, palm kernel, vegetable oil, poultry products (chicken, eggs and turkey), Indian incense, tinned fish in sauce (Geisha, Sardines), cold rolled steel sheets, galvanized steel, roofing sheets, wheelbarrows, head pans, metal boxes and containers, and enamelware.

Others are steel drum, steel pipes, wire mesh, steel nails, wire rods, security wire, wood particle and board, wood fibre boards and panel, plywood board and panel, wooden doors, toothpicks, glass and glassware, kitchen utensils, tableware, tiles and wooden fabrics, plastic and rubber products, and soap and cosmetics.

The CBN Governor, Mr. Godwin Emefiele, had a few months ago said the bank would bar importers of toothpicks, rice and other products from accessing forex at the nation’s forex markets.

The latest policy is expected to make the prices of the listed items to shoot up in the market as importers of the items will now source for foreign currencies on the street market also called black market.

The naira, which goes for 199 against the dollar at the interbank market, now sell for 222 at the street market.

NairaQuest:
This is a very poor policy. Those affected will resort to the black market to get the dollar they need and that will put pressure on the naira. I see the Naira trading at 250 to the dollar by December

The price of uncle Ben's rice will increase and the prices of the other affected items and thar may fuel inflation

Unless there is an alternative for those things, Nigerians are in for a bad season

Dangote invests N165bn in rice farming in 5 states

Dangote Industries Limited (DIL) recently signed a memorandum of understanding (MOU) with the Federal Ministry of Agriculture and Rural Development (FMARD) to invest $1billion (N165 billion) for the establishment of fully integrated rice production and processing operations across fives States in Nigeria.

Towards this end, Dangote has acquired farmland in Edo, Jigawa, Kebbi, Kwara, and Niger states totalling 150,000 hectares to be used for the commercial production of rice paddy. This will create thousands of jobs for Nigerians and boost food security.

As part of the project, Dangote will also establish two state-of-the-art large-scale rice mills each with a capacity to mill 120,000 metric tonnes of rice paddy, bringing total capacity to 240,000 metric tonnes, with plans to double capacity within two years. With this installed capacity, the project will become the largest single investment ever made in rice production in Africa. The rice plant is estimated to produce 960,000 metric tons of mill rice, representing 46 per cent of rice imported into Nigeria.

Commending the company for building a strong industrial base in Nigeria, President Goodluck Jonathan, who presided over the ceremony said: “It takes a lot of hard work, commitment and discipline to achieve the feat, accomplished by Aliko Dangote. The country is capable of producing rice that can feed the whole of West African sub-region.”

He assured the company of the protection of its investment, promising to end the high spate of rice smuggling within the next 12 months.
Dangote commended the Government for evolving a robust and consistent policy that has made Nigeria an irresistible place to invest.
He said: “Our goal of making Nigeria a net exporter of rice will be achieved faster by this significant investment, and I congratulate the Minister of Agriculture and his team for the very strong demonstration of public-private sector partnerships and collaboration to drive significant transformation in Nigeria’s agriculture sector.”

As an integrated operation, the Dangote farms and the mills are expected to significantly boost smallholder rice production in the regions through a nucleus and outgrower farming model, thereby transforming livelihoods in rural Nigeria. The sites selected are rice-growing communities and they will be supported by Dangote’s provision of agro-inputs, training, and marketing linkages to improve community farming operations. Employment opportunities will also be created for at least 8,000 Nigerians.

At the event, Dr. Akinwumi Adesina, Minister of Agriculture, said, “This investment by Dangote Industries Limited is transformational for Nigeria and the rest of Africa. The 150,000 hectares of rice farms and the planned 240,000 metric tonnes processing capacity of international quality grade rice is guaranteed to turn Nigeria away from being a rice importing country to a major rice exporter. Through this billion dollar commitment, Aliko Dangote, Africa’s leading business man, has clearly attested to the policies and approach that the Federal Government has undertaken to transform the nation’s agricultural sector.”

He said the rice self-sufficiency policy of the government was directed at saving Nigeria N356billion annually. Within three years, the number of integrated modern rice mills in the country rose from just one in 2011, to 18 by 2014, all processing the local paddy into high quality finished rice. High-quality and well-packaged Nigerian rice is now in the local market, including Quarra Rice, Umza rice, Ebony super rice, Eko rice, Mikap rice, Ashi rice, Queen of the Niger and Mama’s Pride. http://dangote.com/NewsDetail.aspx?custid=138

Stolen:
Dangote claim heaven and earth but stifles competition and impoverish the masses. Rice is the food of the common man and cement a basic necessity for everybody to put a roof over their head.

Banning Rice and Cement will leave the masses vunerable to profit maximisation of an Oligopoly like Dangote.


Wen Rice and Cement become too expensive they will complain but they are here allowing sentiment to becloud their judgement.

The market demand and supply is suppose to dictate price not Dangote becos he needs an extra 100 billion to be the richest man in the world.

This is unacceptable.