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Money
CBN’s policy saves N217b from rice import
By Chijioke Nelson

13 November 2017 | 4:27 am

• Emefiele raises hope on interest rate cut
• Institute’s chief seeks improved human index

The capital control policy of the Central Bank of Nigeria (CBN), which excluded 41 items from accessing foreign exchange (forex) at the official window, saved the country N217 billion ($600 million) worth of forex in its first full year of implementation in 2016.

Besides, due to the dogged implementation of the restrictions, according to the bank, the country has also recorded spectacular improvements in domestic production of most of these items as at now.

CBN Governor, Godwin Emefiele, who made the disclosure at the 2017 Bankers Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN), in Lagos, last night, said there is a significant fall in imports of rice from several countries as at now.He said Nigeria’s biggest rice exporter- Thailand, lost 99 per cent patronage from 1.2 million metric tonnes to only 784 metric tonnes by the end of 2016, being the first full year of the enforcement of the policy.


On the other hand, this fall in imports have been largely filled by a boost in local rice production, as emerging producers like Labana Rice Mills in Kebbi State are trying to keep pace with demand, now processing 320 tonnes of a rice a day.

Also, from Kano State, UMZA rice has expanded its milling capacity substantially to the extent that with the recently recorded bumper paddy harvest, the company today takes delivery of over 100 trucks of paddy rice daily.

Meanwhile, the bank chief said with stability in the turn of events, the policy makers may soon begin to mull strategies to ease the 16-month old rate hold, in efforts to further accelerate the recovery process.Monetary policy stance, he said, could change when the fundamentals become supportive, adding that if the pace of disinflation becomes adequate and inflation at predicted levels, the policy committee would begin to see strong justification for an easing of monetary policy.
Similarly, the President of CIBN, Prof. Segun Ajibola, has urged the government to see that the improving economy does not end in numbers, but reflect on the well being of the citizens.The don, while delivering his address at the dinner, said the subsisting World Bank’s Human Development Index on the country does not speak well of the conditions of the citizens and the improving economic growth.

He admitted that there have been marked improvement in the macroeconomic landscape between 2016 and now, especially the successes in ease of doing and inflation, but said that more needs to be done.

For Emefiele, the optimism is high that inflation would return to very low double digit or high single digit levels next year, as the socio-economic factors that are driving food inflation are resolved, which would then help to reduce the challenges therein.

“Over the last 12 months, Nigeria’s reserves grew by over $10 billion from just over $23 billion in October 2016 to over $33 billion in October 2017. It is my belief that if we remain resolute with our efforts, policies and actions, we can attain position of about $40 billion by end 2018.

“As we entrench and sustain the transparency in the forex market, with reserves’ accretion continuing, and market confidence and improved sentiments remain, I expect the exchange rate to not only be stable, but would begin to appreciate against major currencies,” he said.

The banker said that the achievements are clearly verifiable successes and of government’s attempts to create jobs locally, improve the wealth of our rural population, improve industrial capacities and ultimately attain economic growth in Nigeria.


“Psaltry International Limited (PIL), an agro-allied manufacturing company based in Oyo, produces starch. Before the policy, it had few customers and plenty of backlogged inventory.
“Today, PIL boasts over 50 multinational clients, including Nestle and Unilever. The company has saved Nigeria $7 million in foreign exchange drawdown over the two years of the policy.“Baton Nigeria has also taken advantage of the policy and is now producing high- quality, competitive toothpicks that is 25 per cent cheaper than their Chinese competition.

“As part of the gains from the policy and in line with an agreement we reached with Unilever, the company, which left the country few years ago, will be commissioning a new Blue Band Factory in Agbara, Ogun State early next month,” he added.


https://m.guardian.ng/business-services/money/cbns-policy-saves-n217b-from-rice-import/

And yet we say we can't shift focus from oil in another thread. Govt of the north.

Welcome development. Some were jubilating when they were buying a bag of rice 8k not knowing that they were killing local farmers and also depleting our foreign reserve. Thank God for this Administration.

If we double efforts then sky is limit.

Good development. I am happy for rice farmers

GavelSlam:
I noticed some people evade threads showcasing the positives of their nation.

Wetin happen?

I wonder why you expect any learned person to take whatever this government says seriously. Emefiele like his colleagues in his government has perfected the use of half truths to score cheap political points. The question is, is the common man seeing any improvement in his living condition under Buhari govt? No!

GavelSlam:
I noticed some people evade threads showcasing the positives of their nation.

Wetin happen?

That is it.

When they hear that Foreign Reserve has increased, they become sad but when they hear of bomb blast you will see them every where with euphoria.

They hate their country, can you imagine?

GavelSlam:


All the indices given by independent media houses from reduction in the cost of foodstuff to rallying of share prices on the stock market appear concocted to you?

Or those ones don't affect the common man?

OK, what about the stabilisation of the Naira against international currencies, that one na lie?

Is it also untrue that our foreign reserves have grown as against what was inherited in 2015?

On paper! Oga, has anything changed in your neck of the wood? Mine have not.

veraponpo:


That is it.

When they hear that Foreign Reserve has increased, they become sad but when they hear of bomb blast you will see them every where with euphoria.

They hate their country, can you imagine?

Really unfortunate to note this unpatriotic attitude

HoluwarTohbar:
On paper! Oga, has anything changed in your neck of the wood? Mine have not.

It seems you don't like good news or you just argue with sentiment.

Have you heard of LAKE RICE sold at 6k and 12k for 25kg & 50kg respectively. We've bought already, & if you still doubt, I can direct you to where its sold in Lagos.

Like GavelSlam said, let's commend FG's effort on agriculture and our foreign reserves. We'll get there!

commoditiesnig:

It seems you don't like good news or you just argue with sentiment.

Have you heard of LAKE RICE sold at 6k and 12k for 25kg & 50kg respectively. We've bought already, & if you still doubt, I can direct you to where its sold in Lagos.

Like GavelSlam said, let's commend FG's effort on agriculture and our foreign reserves. We'll get there!

Oga choose a hustle that suits you. If you direct me to where this special rice is sold, how many more can you direct? Flood the market with it and let the common man on the street be the judge.

GavelSlam:


Maybe because you never invested in the stock market.

But at least you buy palm oil and garri, has the price not reduced where you are?

It has not! It has not at all!

HoluwarTohbar:
It has not! It has not at all!

Where do you live? I asked because where I live, cost of garri and a few other things are dropping gradually.

GavelSlam:


He would never tell you because his aim is to cause disaffection.

It's quite pathetic!
Sometimes I wonder how people take pleasure in wishing for, expecting and celebrating only bad news.

GavelSlam:


All the indices given by independent media houses from reduction in the cost of foodstuff to rallying of share prices on the stock market appear concocted to you?

Or those ones don't affect the common man?

OK, what about the stabilisation of the Naira against international currencies, that one na lie?

Is it also untrue that our foreign reserves have grown as against what was inherited in 2015?

To many people especially those infested with corruption, Nigeria being good is only when they earn without working for it.

kurt09:
Welcome development. Some were jubilating when they were buying a bag of rice 8k not knowing that they were killing local farmers and also depleting our foreign reserve. Thank God for this Administration.

But you were part of the Z.... blaming Emefiele and praising the dull minister of finance.