But toothpicks? What about the steel companies in the country?

Companies making anything from soap to tomato paste could run out of raw materials and be forced to shut down as the Federal Government has effectively banned the import of almost 700 goods to prevent a currency collapse, Reuters has reported.

Selected luxury items such as make-up or brown bread imported from Europe have become scarce in some shops as the Central Bank of Nigeria denies importers dollars, seeking to stem the fallout from a crash in vital oil revenues hammering the economy.

The CBN had restricted access to foreign currency to import 41 categories of items to stop a slide of the naira but the Manufacturers Association of Nigeria said this in fact amounted to about 680 individual items.

The foreign exchange bans are part of a long-term plan by President Muhammadu Buhari to encourage local manufacturing, but it runs the risk of pushing the economy closer to recession after growth halved in the second quarter compared with the same period last year.

Many items on the central bank list – ranging from incense and toothpicks to plywood, glass and steel products–are not available in the country in sufficient volumes.

While Nigeria grows a lot of tomatoes, transport is poor and it lacks facilities to produce the concentrate needed by factories making tomato paste, a staple in the West African nation.

“We’ve taken this matter up with the central bank and the highest authority in this country … Fiscal authorities will also be involved, they weren’t before,” the Director-General, MAN, Mr. Remi Ogunmefun, said.

MAN had told the CBN 105 items should be removed from the list, but the bank said it could not afford to do so and agreed to look into removing 44 items.

MAN also suggested 93 finished items that should be added to the list because Nigeria produces enough of them.

Since the central bank unveiled its controls in June, executives have had to deal with foreign suppliers worried they won’t get paid. They also struggle to convince banks to approve dollar payments.

“It takes minimum of 10 days now to get dollars, before it was 24-48 hours, and sometimes when you request like $100,000, you only get $80,000 and it’s getting worse,” said an executive at a large furniture company, asking not to be named.

It’s not clear which imports are still allowed as the CBN lists only categories. He can still bring in beds and chairs to be assembled in Nigeria, but not sofas.

Some firms have defaulted on contracts and lost credit lines. “Many companies have defaulted on fulfilling foreign obligations … even blue chip companies … for the first time,” the Director-General, Lagos Chamber of Commerce, Muda Yusuf, said.

With no cabinet in place, the CBN Governor, Mr. Godwin Emefiele, finds himself discussing policies usually reserved for a finance or economy minister.

At a news conference on Tuesday, Emefiele justified the controls — which Buhari has backed — as a way to create jobs in a country hit by poverty despite its oil wealth.

http://www.punchng.com/business/money/plant-closures-loom-as-cbn-restricts-forex-report/ lalasticlala

well thats good but he did that at the wrong time...he should check the side effect before taking the final decision...

Buhari will run this country to a halt very soon.

That's serious

what kind of govt do we have, u are banning imports of some vital items when u can't produce them.
buharis govt is doing the right thing at the wrong time
God save us from this clueless govt.

bonechamberlain:
what kind of govt do we have, u are banning imports of some vital items when u can't produce them.
buharis govt is doing the right thing at the wrong time
God save us from this clueless govt.

Tomato paste & toothpicks are not vital, they are things we should be able to produce.

Since you guys claim to be "industrious" & "fulfill needs", one of you can establish a plant...

modath:



Tomato paste & toothpicks are not vital, they are things we should be able to produce.

Since you guys claim to be "industrious" & "fulfill needs", one of you can establish a plant...

Mr man apply common sense when writing, I can see ur hate for a particular group of people has beclouded ur level of reasoning.

first they are not vital, they are things " we should be able to produce" here urself, now are we producing them in a manner where it can feed the whole country.

secondly business men thrive where there are no antagonist policies, and where the govt provides a level playing ground for them. and also a business man chooses what to invest in, not what someone tells him.

Why thebfuxck shld we be importing to manufacture tomato paste? What a waste!!!!

The issue of bad transportation is just a flimsy excuse. Factories are supposed to be sited close to raw materials.

The CBN banned what could be produced in the country, and that is a good move.

Let us suffer now, abeg

Mr. President Sir,
You have to be flexible with your policies no matter how important they are.

If you have to win the 'corruption' war, you need the 'masses' behind you

All these companies employ staff. If they can't access funds to do their businesses, staff salary won't be paid. Some may have to cut staff strength...

And Baba u know the monthly 5k and meals for pupils is yet to commence. So what happens when Egbon looses his job and joins unemployed aburo @ home.

The Niger delta boys can no longer steal, refine and sell oil - return to the creek contemplated

Biafra.... **story for another day**

Sir, you Government will first be judged on the impact on Nigerians...

Let Tinubu do the witch-hunting...
After Saraki, I hope Amechi, Oshomobaba, et all will be made to openly declare their assets @ CCT.

BTW, Deizani and others must also return all our money!!!!

I didn't vote for you, but I'm glad I didn't vote for PdP...

Is Jonathans policies APC

This is part of CHANGE--Come, Have A New Grievous Experience(change).

Was so perplexed to learnt our growth had slumped considering we are moving almost below 2% in contrast to the previous year 6+%. Even now, we can't claim to be Africa Economy Powerhouse with this headless and tailess policies. **tix gud bt wit de wrong tymin**

Make sure you can spell Economy before quoting me.

this is the reality.... Not d big fat lie vanguard sampled to us dis morniing abt 400 billion naira recovered by investors, without any financial magazine, journal carrying it only vanguard