The House of Representatives summoned Cardoso over the lifting of FX restriction on 43 items previously banned from accessing FX at the official window.
Presenting the motion at plenary on Tuesday, under Order 8, Rule 4 and Order 8, Rule 7(2) of the Standing Orders of the House, Hon. Sada Soli recalled that the CBN imposed the restrictions in June 2015, to conserve the FX reserves and promote local production of certain goods, including about 11 food items.
Soli added that on October 12, 2023, the CBN announced, among other issues, the lifting of FX restrictions hitherto placed on the 43 items.
He noted that some of the items had tariffs to protect local industries, as they were on the imports prohibition list.
The lawmaker expressed concern that the CBN decision would greatly affect local production of items, such as rice, cement, and palm oil, among others, as it would force local manufacturers to hold the short end of the stick. He added that this would invariably lead to factory closures and ultimately erode the country’s capacity to build the local economy.
He said, “Aware that almost all the 43 items are from two critical sectors, which have been identified by all policy documents from the Nigerian Economic Empowerment Development Strategy (NEEDS) and SEEDS to Vision 2022, as being areas that are critical to economic diversification;
“Worried that some of the listed items enjoy 60 per cent-70 cent subsidy from their countries of origin, thus, putting Nigeria’s local products at a comparative disadvantage and without any protection, and will lead to job losses and social exclusion.”
Soli lamented that the benefit of the cheaper imported inputs, as stated by the CBN, would give undue advantage to middlemen to drive the economy, which is inimical to economic growth and not suitable to the current Unified Forex Market in the country.
The lawmaker lamented that Nigeria would not be competitive in the African Continental Free Trade Area if the country’s markets were flooded with imported finished goods.
He also regretted that the apex bank’s decision followed the rising food inflation in the country, which had adversely affected the economy and the purchasing power of consumers.