CBN Asks Banks to Give 60% of Their Forex to Manufacturing Firms

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The Central Bank of Nigeria (CBN) has asked commercial lenders to allocate 60 percent of their foreign exchange purchases to manufacturers, in a bid to boost their ability to pay for imports and boost the economy.

Fall in oil revenues have caused widespread dollar shortages. This has hit manufacturers’ ability to import raw materials and spare parts, forcing many plants to close.

SEE ALSO: ‘Nigeria Is Poor’ – President Muhammadu Buhari

CBN said in a circular that it wanted to encourage the production of local goods by asking banks to allocate more hard currency to industrial firms.

The circular read, “Authorised dealers (banks) are hereby directed to dedicate at least 60 percent of their total foreign exchanger purchases from all sources to end-users strictly for the purposes of importation of raw materials, plant and machinery.

In June, CBN adopted a new Forex policy, allowing the currency to weaken by 40 percent in a bid to attract more foreign investment.

But so far trading in the official foreign exchange market has been limited as those with dollars prefer to sell them for a higher rate on the black market.

Nigeria’s economy contracted in the first quarter and officials have said recession is likely.

SEE ALSO: 9 Banks Barred By CBN From Forex Market

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cbn, central bank of nigeria, forex

1 Comment

  • please our CBN governor, kindly tell Diamond bank Nigeria plc to start collecting National identification number slip (NINS) the yollow pepper. Federal government of Nigeria has said, its confidential and may only be released for legitimate transactions. since the card is not yet out. I can’t put my money the bank, I ll be find it difficult to make use of account. Simple because I don’t have national identification card, when I have not been given the card. but have the slip (yollow pepper slip )which I was given to make transaction while waiting for card. please do something about it.

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