I might not have deep knowledge but what I know is that, Naira started losing its value from 197/$ when Buhari and Emefiele started to introduce their useless monetary policy and banning of many products.
Has any of the local rice productions effective since they close border to it.

Khastro:


Allowing importers to access FX for this purpose will return pressure on already scarce FX.
Why can't we focus on solving this mono economy challenge?
Cbn should review this plan

They have been accessing forex for the purposes but, through the black market. Now the CBN wants to bring them to the main stream I and E window. This will reduce patronage on the parallel market and somehow bridge the gap between the black market and the official window.

Hollusilva28:
Rubbish system of Government + Rubbish President + Rubbish Ministers + Rubbish CBN policy + Rubbish Lawmakers + Rubbish Governors + Rubbish Commissioners + Rubbish Local Government chairmen = BEAST OF NO NATION 🇳🇬🇳🇬

rubbish citizen like u

As early as it's best

Chairman, for your information: Nigeria does not have competitive advantage in most productive sectors.

Production of rice in India, thailand is like 50% cheaper than production in nigeria. Even with the restrictions, these items were still being imported.

If the government subsidizes it, these same importers will make bastard money. Manufacturing will crash in the local market.

ORIENTATION101:
fool, those items have been banned for 9yrs, instead local market Decides to choke nigerians making the price skyrockets everymarket days.
How can imported rice and cement be cheaper than local ones.

grandstar:


Why are you never civilized when replying?

A good policy is a good policy even if has initial impact. seems negative.

How's it a good policy
You're turning out to be an APC apologist
You suggested cutting corporate taxes to improve jobs and industrial outputs
Yet you're praising a govt who is opening the flood gates of importation which will kill local industries

@mikeapollo


After destroying the naira with a useless ''floating market'' exchange rate ?
A very clueless and incompetent government.

@me
Your naira was over valued before. The rate you enjoyed back then was artificial. What do you export to earn fx? Only crude oil. Are you producing enough to meet your fx needs? No.

@Beremx
I hope the price of rice, milk and sardine will come down.

@me
It can't come down because the exchange rate is high. That's why they lifted the restriction.

I know say na these ones you go ask. All these ajibo self

Vision101:
@Beremx
I hope the price of rice, milk and sardine will come down.

@me
It can't come down because the exchange rate is high. That's why they lifted the restriction.

I know say na these ones you go ask. All these ajibo self

na one chance we dey. Even importing rice from Seme border will be expensive because CFA is higher than naira

Algold:
People are hoarding dollar at the expense of the Naira. Just imagine some private schools asking pupils and students to pay in dollar within the Nigeria space.
The solution, is to eliminate hoarding dollar, booster local productions.
Ban Bereau de change, ban domiciliary accounts that accept foreign currency (should be exchange at point of entry)
Long jail terms for money laundering, especially on foreign companies within the country.

If only they'll adopt this policy,a week is more than enough for The Dollar to crash.
But remember we are in a Democracy where people have the right not only to accumulate wealth but to keep it the way they want.You'll see litigation here and there and people will definitely challenge the decision even within the given Government they must be saboteurs.

Secondly won't that drive the little investors that still remain, considering the fact that we are a consumer economy.

ORIENTATION101:
the importers will leave blackmarket forex and trade on cbn import and export forex windows which will boost forex liquidity .
Watch how price of Rice and cement crash in weeks.

Lol now that these are items are on restricted list dollar still scarce, what if they return then

chisomkachy:


https://m.facebook.com/story.php?story_fbid=pfbid038BsSm9hcsyudCNFxeDjpR1yvszGhv66ugtB88EoUMmY9PaWndHGf9eX5EnLkDASKl&id=100064853313796&mibextid=Nif5oz



In June 2015, the Central Bank announced that some 41 items were “Not Valid for Foreign Exchange”, on the grounds that they could easily be produced in Nigeria rather than being imported into the country.

Some of the affected items include rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry, tomatoes/tomato paste, soap and cosmetics, and clothes.

Other items include private airplanes/jets, Indian incense, tinned fish in sauce, cold rolled steel sheets, galvanised steel sheets, roofing sheets, wheelbarrows, head pans, metal boxes/containers, enamel ware, steel drums and pipes, wire mesh, steel nails, wood particle boards, and panels.

Equally affected were security and razor wire, wood particle and fiber boards and panels, wooden doors, furniture, toothpicks, glass/glassware, kitchen utensils, tableware, tiles (vitrified, ceramics), textiles, wooden fabrics, plastic/rubber products, polypropylene granules, and cellophane wrappers.

The apex bank subsequently added fertiliser and maize/corn to the list of banned items.

According to the apex bank at the time, the I&E market functions by a “willing buyer, willing seller” system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer.

All this na just paper talk 😂😂 , how much dollars do we earn as a country a side that of oil which other services brings in dollars to the country?

What we experience in the country is too many naira chasing few dollars, if that could be turned around then the Naira will have it's value back, all that you have stated above can not achieve that

Fryx:


How is encouraging imports beneficial?

nah wicked person u be. Is it because may be u dey produce local inferior commodity. As d ban on these items improve d economy?

Babangidapikin:

At least there was more rice mill spring up , before the looted the Anchor Borrower fund , now Thailand would be happy , they can flood our economy with substandard rice ..

u dey craze. So u happy dat rice mills spring up. Does dat solve d people's suffering. See Wetin u dey talk. Nah rice mills be your priority. How many rice they don mill. What is d current price of local rice. Leave Thailand to supply substandard rice. Dat substandard rice is better than dat local rice 100 times. Wicked people.

Yes

BarrElChapo:
Does this mean that they can now be imported into the country 🤔

Corrections:



Impact ke Corruption killed the impact. You know what? The same corruption will kill the supposed impact on the new policy. See I will keep saying it that until they kill corruption ( a deadly virus ) no expert economy policy will safe Nigeria.

You are on point

frog12:
west: america, europe
and i used think you were smart

Smarter than you thought. Just trying to outsmart the smartest

Kukutente23:

How's it a good policy
You're turning out to be an APC apologist
You suggested cutting corporate taxes to improve jobs and industrial outputs
Yet you're praising a govt who is opening the flood gates of importation which will kill local industries

I have always been a firm believer in in free trade. It is not an APC thing.

Are imports bad for a country? No. On the contrary, they are very good.

They generate wealth and prosperity.

Let us just take a look at a few imports for example: wheat, rice and cars

Wheat imports probably create over a million jobs. The flour it produces is a by product in the production of many edibles.

Likewise rice. I am sure if you check the rice value chain, it too probably provides livelihood for over a million people that is if the federal government did not pursue the senseless rice sufficiency policy.

Let us look at Tokunbo cars. Directly and indirectly, it may provide a livelihood for over a million people. I know ten people who are car dealers. I can not mention a single person who works for a local car manufacturer.

The importation of many finished goods produce wealth as well. We just want to live in denial. Imagine a businessman borrows N20m to import wigs. He sells those wigs and makes a profit of N10m. He does this 4 times in a year. That is 40m. Will he not lodge this money in a bank. Will the bank not lend out this money? Will the businessman not hire workers? Will he not rent a warehouse?

The businessman will buy a car, send his kids to school, build a house and so on. Imports aren't bad for you but very good.

I can just imagine if there was zero % import duty on steel, textile fabrics and many other products. No duties on steel will be a blessing on the small and medium scale industries. Small scale tailors would enjoy a boon and I won't be surprised if Nigeria starts producing garments for exports to neighbouring countries.

The greatest benefit of liberalizing trade is that it would compel the country to focus attention on areas it has comparative advantage. Nigeria has no business in trying to be self sufficient in rice production because it has no comparative advantage in its production.

If the resources expended on Nigeria on rice was focused on commodities the country has comparative advantage, I won't be surprised if each state would add $100m to its exports. Nigeria produces 100,000mt of cashew while Cambodia's with about 16.6m people produces 700,000mt.

Nigeria has the capacity to export $2bn worth of shea butter. Sesame seed is another money spinner. The country is throwing these opportunities away

We should not import tooth pick as a nation but we need rice plenty 😅

Ofunaofu:


This should be the real deal

Ban use of dollars

Do this and the value of the naira further plummets. Ban leads to nowhere.

okewumi:


You get sense.
Immediately obasanjo baned importation of egg, the price jumps from #80 per create to #900.

When Buhari banned rice. The price went up from 12k to #30k . I went to Adani in enugu and two modu of rice which is equivalent to 50kg was around #14k but because of greedynes they sell in city around 32k. Nigeria is complex. Whatever it will make life better for masses should be introduced

That's actually a normal thing to do. A ban on foreign items places a high demand on local producers. High demand and low supply = increased prices.

Khastro:


Allowing importers to access FX for this purpose will return pressure on already scarce FX.
Why can't we focus on solving this mono economy challenge?
Cbn should review this plan

Not allowing them access to FX on this items led to capital flight. It is basically why black market FX thrives. Alot patronise black market fro FX for these items.

That ban was one of the worst monetary policy ever. Immediately buhari introduced it in june 2015, dollar went up and we are here today.

When peter obi said this, alot of Ronu and their godfather balablu including mockery were all mocking PO. That all he knows is container economics and only knows importation.

But times solves all problem, and with patience the truth will always come to light

Againstallodds:
Expect dollar to dip in the coming days

Yes. It will start dipping from 6:23 am tomorrow

Acidosis:


You cannot magically eliminate hoarding of dollars. Scarcity is the major reason people hoard products (e.g., petrol, dollar, food, water, etc.). To stop hoarding, stop scarcity. Simple as ABC.

Have you ever imagine the more the CBN released dollars it vanished with little or no effect. Bereau de change through the help of some commercial Banks are the problem of this country... Do you know that many importers have opened domiciliary accounts where they keep huge amount of dollars hoping to ripe the benefits when scarcity occurs.
We need to look inward if we must moved forward

TrumpDonald2:


😂 Ban Bureau De Change? In this Nigeria, that will never happen. Only the truth will set us free.

How do you source for dollars in foreign countries? Is it not at point of entry if need be at a certain amount. Why must we have bureau de change everywhere. they are the richest in the country. How do they make there Money at the expense of the Naira.

Acidosis:


You cannot magically eliminate hoarding of dollars. Scarcity is the major reason people hoard products (e.g., petrol, dollar, food, water, etc.). To stop hoarding, stop scarcity. Simple as ABC.

The few dollars entry counrty are going into those that choose to hoard it for the reasons we all know. We should create robust and transparent financial system

Buharidgeneral:

You said it all. I was shocked when my children of pry 5 told me

That is just the beginning... It will spread to other sector

Zooposki:


What if you still want to reinvest those dollars abroad to get more dollars, how would that work?

If you have transparent financial sector. It will be easy. I can remember before Buhari regime. I get my forex account credited in dollars through my bank directly at the ratio stated at CBN portal. But now it is very difficult and different now. Some individual sabotaging the Naira should be wipe out completely

The problem is trust.

If you were one of those importers hoarding dollars, would you trust the government and release the one you are hoarding?

Wouldn't you just go into the I & E exchange and ask for more dollars for importing those unbanned products thereby putting more pressure on the naira-dollar situation?

BoldBrainz:


I have mixed feelings about this.

This is a purely experimental approach. They want to remove those import restrictions on those items to see if the entrance of more importers into the market will compel those hoarding FX to push the dollars back into the system.

Also, those items have been on restrictions for years now, yet they're somehow finding their way into the country and to the local markets. Means importers are still smuggling them in. So why not give them the freedom to import so to see if it unties speculative knots around the FX windows?!

Even if this is to ease pressure on the naira, it will be minimal and not immediate, say from next year.

happney65:


Boost local production by fixing power. That is the major thing. Boost local production. There cannot be any production if power isn't fixed

2. Bureau De change cannot be banned. It is a source of livelihood for some. In essence black markets cannot be totally banned as there are black markets around the world. Banning them will make things worst as people will go there to get their dollar..

I think any international payments coming into Nigeria should be paid in dollar. Domiciliary accounts should be easier to open.
Western Union,MoneyGram and the likes should pay out too in foreign currencies. You should choose the option of either being paid in Naira or Dollar, If we can get over the counter, the rate will fall. The scarcity is what is making it hard and getting more expensive.

But first of all. We should increase our productivity. We should start exporting. We are not exporting at all. When we do our currency will have a little bit more value. But before we can do that,we should fix Power. That is what Obi was telling una,yet we use ethnic and tribal sentiments take do am

Shuke

what do you want us to export?
When we have not met local demand.