The House of Representatives, yesterday, summoned the Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, to appear before it over the lifting of the forex ban on 43 items.

This resolution followed the adoption of a motion of urgent public importance moved by Sada Soli (APC: Katsina).  The apex bank had lifted the ban on importers of 43 items restricted from accessing foreign exchange on its official platform.

It said the move was to ensure price stability and boost liquidity in the foreign exchange market.  CBN also said the removal would make monetary policies effective, reduce inflation rate and discourage the importers from patronising the parallel market.

But providing an alternative argument, Soli expressed concern that some of the items have tariffs to protect local industries, as they are part of the import prohibition list.

He argued that the decision would greatly affect local production of items such as rice, cement and palm oil, adding that it will force local manufacturers to hold the short end of the stick, invariably leading to factory closure and ultimately eroding the nation’s capacity to build its local economy.

The lawmaker said almost all the 43 items were from two critical sectors that had been identified by all policy documents from NEEDS, SEEDS to Vision 2022 as being areas that are critical to economic diversification.

He feared that some of the listed items enjoy 60 to 70 per cent subsidy from their countries of origin, thus putting Nigeria’s local products at a comparative disadvantage, and without any protection, alongside job losses and social exclusion.

The House, therefore, urged the apex bank to engage with other stakeholders within the fiscal ecosystem, urging a system that would engender professional conduct by all key players in the Nigerian foreign exchange market to guarantee market forces and determine exchange rates on a willing-buyer, willing-seller principle. The lawmakers further appealed to the CBN to desist from market suppression tendencies with regards to the I & E window.