Few weeks ago, the Central Bank of Nigeria announced that it would halt the sale of FOREX to import textile materials into the country. This according the apex bank is to encourage the thriving of the domestic production of textile in Nigeria for job creation and the development of the economy.
By implication importers of textile materials would have to source FOREX from any other sources if they are bent on importing rather than domesticating production. IMPACT NEWS agrees with the CBN and notes that this move is novel and should be encouraged by all stakeholders.
Textile has now joined the list of products banned by the CBN from FOREX. The likes of Rice, cement, poultry, tinned fish, furniture, toothpicks and many others have been taken out of FOREX by the CBN. The result is currently there for the all to see.
Recently reports also shows that Nigeria overtakes Egypt as the largest producer of rice in Africa. It is a commendation to the effort of the CBN to increasing local production and strengthening the Naira in the FOREX market.
The CBN upon placing a ban on the rice importation engaged farmers in rice production through the Anchors Borrowers Scheme that provides affordable loans with single digit interest rates to these farmers. These and other incentives have helped to increase rice production in the country.
Nigeria is said to be capable of being self-sufficient with rice locally produced. The ban on FOREX for rice saw a lot of revelation with Abakalliki rice, Ofada and others flooding the market, the popular LAKE Rice jointly produced by Lagos state and Kebbi state are also pointers that intrastate efforts can produced comparative advantage.
In spite this improvement in the agriculture sector, the ban on FOREX for rice and other products contributed to the recession Nigeria slumped into in 2016. While the government was bent on implementing its policy on FOREX, it failed to provide palliatives for local rice production industry in the country considering that Nigerians heavily consume rice daily. While the product was not legitimately imported into the country, it began to flood the market though the borders by smugglers, with Nigerians paying more for the products.
Good to know that the CBN has assured that cotton growers in the country would be incorporated into the Anchors Borrowers Scheme and will also enjoy single digit interest rate like their counterparts in the rice production.
We only hope that the federal government and the CBN would learn from this horrible experience and ensure that the mistakes of the past would not come back to haunt Nigerians.
The sincere efforts of the government to improve local production of goods should be encouraged by all Nigerians. And we stand with the President on this that Nigerian should patronize and consume what we produce.
