Moghalu Commends CBN’s Decision To Lift Forex Ban

Exchange Rate: Nigeria’s Economic Crisis Beyond Currency Crises Says Kingsley Moghalu
Kingsley Moghalu

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has commended the apex bank following its decision to lift the forex ban imposed on 43 items.

Moghalu in a tweet on Friday, explained that while the decision taken by the CBN was a difficult decision, it was the correct call.

He further revealed that he was against the earlier decision taken by the immediate past administration to restrict foreign exchange for importers of 43 items.

According to Moghalu, the best way to handle the crisis was to find a way to make imports more expensive than locally produced items through tariffs on imports and electricity reforms to reduce the cost of manufacturing in Nigeria.

“The CBN decision to remove its prior ban of forex for the import of items on the “43 items” list is a difficult one but I believe it’s the correct call. In an opinion piece in @FT as far back as 2016 I criticized the original irrational decision which fed black markets.”

BrandSpur Nigeria recalls that ex-president, Muhammadu Buhari had restricted importers of palm oil and other 42 items from accessing forex directly from the central bank in an effort to encourage local production and protect the nation’s external reserves.

However, on Thursday the new administration lifted the ban and announced that the previously restricted importers can now purchase foreign exchange directly from the apex for their various foreign transactions.

The latest development comes as President Bola Tinubu-led government hopes to attract more investors as he intensifies efforts to revive the country’s deteriorating economy.