The recent directive by President Muhammadu Buhari to the Central Bank of Nigeria (CBN) to stop providing foreign exchange to food importers in the country has continued to generate reaction as the founder of the National Association of Government Approved Freight Forwarders, NAGAFF, Dr. Boniface Aniebonam has added his voice in the debate.
Speaking to newsmen in Lagos last week, Aniebonam noted that there was a system collapse as some of the policies of government did not really add value to the economy.
He cited the instance of the 43 items which according to him were delisted technically by the virtue of the position of the Central Bank which he said was uncommon and tended to create problems “in the sense that those 43 items, technically, they are banned if the commercial banks are debarred from issuing Form M.”
“The position of Mr. President, to me, that is the uncommon support I have been talking about which is being carried out by CBN. If you say that food import will not enjoy foreign exchange, it does not mean that in Nigeria, whoever has money cannot come in. But if the CBN has directed that commercial banks cannot register Form M, technically you have banned the cargo. It is even a source of investment; Nigerians who have money outside this country can now bring in the money and bring in goods into the country.
“In international trade, you have three categories for financial matters, goods coming into the country under valid for foreign exchange, not valid for foreign exchange and bill for collection. So, when you go through confirmed letters of credit, it means that CBN must give you that grace of allowing you to use the FOREX but when it is not valid for foreign exchange, it means that you need to source for your FOREX .
“But then, the Foreign Currency Act made it very clear that if you have ten thousand Dollars, you are free to go. Anything outside ten thousand Dollars, you must make declaration and show the source and if you have money, you can bring in provided you can show the source and then bring in your goods. And if you bring in and say bill for collection, the government will not hesitate because that means you went to the bank to purchase foreign exchange. So, not valid for foreign exchange could be more germaine”, he further explained.
Asked if he would support food import ban in the country going by the indices on ground, Aniebonam who is also the National Chairman of the New Nigeria People’s Party (NNPP) had this to say,” It depends on the kind of food you are talking about. The kind of food you are talking about, do we have its substitute in Nigeria? What I could say is that the government has better information as to things that should be banned and things that should not be banned and of course, what makes a country sufficient is the level of industrialization and I want to believe that every responsible Nigerian will understand that industrialization is key vis-à-vis transport technology, employment opportunities for the young ones and so on.”
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