CBN's Godwin Emefiele Identifies Companies That Won't Get Forex

Amidst scarcity of forex, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has identified companies operating in Nigeria that would be denied access to forex. The decision to block some companies from getting forex comes after the CBN began to sell forex to banks for their customers in need of it.

According to Emefiele, the companies that won't be able to access forex are those that import items that can be produced in Nigeria. So any company with plans to import goods that can be found or manufactured within the country will not have forex to make the transaction with their foreign business partner.

He said the CBN won't support such transaction as it does not support Nigeria's economy or create jobs for Nigerians, “The CBN will not support the importation of items that can be produced in Nigeria because the bank could not spend its foreign exchange reserves on what would not boost the economy and generate jobs for Nigerians.”

Emefiele stated that the CBN is ready to make forex available to companies in need of materials that can't be found in Nigeria. He made this known while highlighting the plan of the government to support the Nigerian economy with manufacturing and Agricultural sectors during a virtual meeting with Chief Executive Officers of conglomerates in Nigeria.

He disclosed that the CBN won't stand against conglomerates searching for legitimate alternative sources of foreign exchange to grow their businesses.

Emefiele addresses low oil price problem

The CBN Governor assured the CEOs that the oil price won't remain low for long. He said it was certain that the challenges posed by the crashed oil price can be overcome. The low oil price is one of the reasons for forex scarcity in Nigeria. Currently, Nigeria has foreign reserves of about $37 billion, and according to Emefiele, it is enough to support the economy.

Meanwhile, Emefiele urged the conglomerates to take advantage of Nigeria's population and the diversification agenda of the current administration. He said Nigeria has a market that will prove vital when the African Continental Free Trade Area commences in January 2021.

He said the CBN will work with relevant agencies to curb smuggling to enable goods produced within the country be profitable and partner with other fiscal authorities to improve the ease of doing business in Nigeria.