The Central Bank of Nigeria (CBN) yesterday included “Fertiliser” in the list of 41 items restricted from accessing foreign exchange.

In a circular signed by Ahmed Umar, director, trade and exchange department, the new policy takes effect from Friday, December 7, 2018.

The CBN on July 1, 2015 restricted the availability of foreign exchange to the importation of 41 items which could be competitively produced within the economy.

The circular reads: “In the continued effort to sustain the achievement recorded from the classification of 41 import items as “not valid for foreign exchange”, in the Nigerian foreign exchange market, authorised dealers and general public are hereby notified of the inclusion of “Fertiliser” on the list effective December 07, 2018”.

However, the CBN said it will ensure that transactions (Form “M”) on fertiliser for which payments are outstanding are settled at the appropriate settlement dates.

The CBN said the policy has resulted in massive investments and the establishments of cottage industries that now engage in the production of the restricted items across the country, adding that the growth and employment benefits have been phenomenal.

However, in a letter to all banks on Monday, signed by Kevin Amugo, director, financial policy and regulation, the CBN said the information available to it indicate the circumvention of the policy as the restricted items are being dumped in the country.

The implications are that the growth and employment benefits arising from the policy may be eroded if not checked.

Consequently, the CBN said its economic intelligence unit in collaboration with the Economic and Financial Crimes Commission (EFCC) would commence immediate investigation of the accounts of the corporates and entities engaged in the unwholesome act with a view to visiting severe sanction on all the culprit.

Such sanction would among others include blacklisting the corporates and their directors, closure of their bank accounts and restricting them from maintaining any bank accounts in any bank under the CBN remit, adding that banks that provided their platforms for such economic abuses would also be appropriately sanctioned.

Godwin Emefiele, CBN governor, had at the bankers’ dinner two weeks ago in Lagos, to expose and sanction any, bank, company or FX operator that colludes with unscrupulous individuals / companies to undermine the policy on 41 items, (now 42 items).

“Given the remarkable success that has been achieved in stimulating domestic production of goods such as rice, cassava and maize, as a result of the restrictions placed by the CBN on access to forex for 41 items, the CBN intends to vigorously ensure that this policy remains in place, and additional efforts would be made to block any attempts by unscrupulous parties(both individuals and corporates) that intend to find other avenues of accessing forex, in order to import these items into Nigeria”, Emefiele said.