Emefiele woos manufacturers, assures forex for essential raw materials importation

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says the apex bank will only provide forex to companies for the importation of raw materials and machinery that cannot be obtained in the country.

In a virtual meeting with the chief executive officers of conglomerates, Emefiele advised manufacturing companies to key into the Muhammadu Buhari-led administration’s initiatives to return the economy to the period when manufacturing and agriculture formed the base of the economy.

He also warned that 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.

Acknowledging that low crude oil prices are a challenge for major economies across the world, Emefiele said Nigeria’s foreign reserves of about $37 billion is robust to support the economy.

With the African Continental Free Trade Area (AfCTFA) now billed to commence in January 2021, Emefiele said Nigeria has provided companies with immense opportunities to produce their items and make huge profits through the Nigerian market.

Stressing on the need to prioritise the Nigerian market, the CBN governor assured the companies that the bank will collaborate with the relevant government agencies to help nip smuggling in the bud, while also promising to protect their businesses to ensure they succeed in Nigeria.

Similarly, he assured the CEOs of the bank’s willingness to collaborate with other fiscal authorities to improve on their ease of doing business in Nigeria, with a view to simplifying their import and export processes.

On the issue of direct foreign investments (FDIs), Emefiele said the Bank was not opposed to the conglomerates seeking alternative but legitimate sources of foreign exchange to boost their businesses adding that the CBN would not hinder the companies from repatriating their dividends.

In 2015, the CBN announced that it had banned forex for the importation of 41 items saying the move would conserve scarce forex and encourage local production.