CBN Should Ban More Imported Goods Being Produced Locally, Nigeria's Monetary Authority Says
- More food items imported into the country might get banned as the central bank of Nigeria has been advised to do so
- The Monetary Policy Committee of the CBN gave the suggestion due to the ailing Nigerian economy which recorded 0.51% growth
- The MPC stated that because the country exited recession doesn't mean it is out of danger considering its slow growth
The Central Bank of Nigeria (CBN) has been asked to increase its list of forex banned items for imported goods that can be produced within the country. The CBN had been compiling the list since 2015.
The suggestion to increase the list was given by the Monetary Policy Committee of the central bank, which said Nigeria's economy is still fragile despite exiting the recession in fourth quarter 2020.
MPC made their position about expanding the baan list in an MPC communique released on the CBN website on Tuesday. It was stated that the 0.51% growth of the Nigerian economy hasn't cleared the dangers yet, as GDP of 0.51 per cent was still far below population growth rate.
To aid the growth of the economy, the committee advised the CBN should adopt administrative measures that will boost consumption, exports and investments, as well as curb inflation.
Source: Getty Images
In its statement, MPC said:
"there is a strong need for the Monetary Authorities to consolidate on all administrative measures taken not only to rein in inflation, but also on the actions so far taken to grow output.
"In the Committee’s view, such measures should include boosting consumption and investments, as well as diversifying the base of the economy through FX restrictions for the importation of goods and food products that can be produced in Nigeria.
"It also urged the Bank to continue to put in place measures that will boost export earnings." the statement from the monetary policy committee reads
Meanwhile, Legit.ng had reported that five Nigerian startups are queuing to take advantage of the cryptocurrency market in Nigeria as the Central Bank of Nigeria revealed that it will allow cryptocurrency in Nigeria.
The governor of the CBN said cryptocurrency will be allowed to come alive in Nigeria four months after it banned cryptocurrency within the country. Although he didn't disclose timeline.
Cryptocurrency exchanges like Bundle Africa, Quidax, Buycoins, Yellow Card, and NairaEX will benefit from the CBN decision after being impacted by the ban.
Source: Legit.ng
