*Says no going back on Buhari’s directive on food
import
* EFCC investigating how P&ID deal was approved
The Governor of the Central Bank of Nigeria (CBN), Godwin
Emefiele, on Monday said more items will soon be denied foreign
exchange from government institutions and Nigeria banking
industry.
He also said that the bank will not go back on the directive of
President Muhammadu Buhari on food importation into the
country.
President Muhammadu Buhari had on Tuesday in Daura, Katsina
State, directed the Central Bank of Nigeria (CBN) to stop providing
foreign exchange for importation of food into the country.
Speaking with State House correspondents at the retreat for
ministers designate in the Presidential Villa, Emefuele alao said
that Nigeria will move to get stay of action against the $9 billion
judgement.
A British court had ruled on Friday that an engineering and
project management company, Process and Industrial Developments
Ltd., has the right to seize $9bn in Nigerian assets.
The ruling by Justice Butcher bordered on a 2010 contract
Nigeria signed with P&ID, to the intent that the latter would
build a state-of-the-art gas processing plant to refine natural gas
(“wet gas”) into “lean gas” that Nigeria would receive free of
charge to power its national electric grid.
On how far he has gone on the President’s directive, Emefiele
said “Let me say this, Mr. President’s comment on the issuing of
forex to people who import food items into the country, is in the
logic of CBN’s management foreign exchange policies that we started
since 2016.
“If you recall, we started with about 41 items (food and
non-food items), because we believe that those items can be
produced in the country.
As we stand today, there are about 43 items on that list and I will
say substantially most of them are food items.
“We are basically saying if we have a food item that can be
produced in the country, why should we waste scare foreign exchange
importing those items into the country, when those can be produced
in the country.
“It is important for me to say that the attempt to misrepresent
the comments of Mr. President is very unfair and unfortunate. But,
what we will say from the CBN is that Mr. President has made this
comment purely to strengthen the position of the CBN, to say that
he believes in what the CBN has been doing since 2016 and there is
need for us to reinforce that going forward.
“I will say that to honest, we would aggressively go more into
the list of items that are being imported into the country, items
that can be produced in Nigeria.
I will like to stress that we would ensure that more of these items
will get on the list of items that are going to be restricted from
accessing foreign exchange in Nigerian banking industry not just
from the CBN source.
“Because, I have heard some comments that maybe it’s about the
CBN’s source, it is not the CBN’s source, we are saying you will
not be able to access foreign exchange from the Nigerian banking
industry because it is important for us to produce these items in
Nigeria and we will follow through on them.
Stressing that there will be no amendment to this policy, he
said “There will never be an amendment because the issue is this,
why should we be exporting jobs to other countries? Today we are
complaining that there is a high rate of unemployment, leading to
some extent the level of insecurity in the country, why should we
allow people to import food that can be produced in the
country?
“We need to improve wealth in our rural communities and I am
saying we will not change course, we will even be more aggressive
on this Programme.” He said
Asked if the President’s directive won’t affect the African
Continental Free Trade Area Agreement Nigeria just subscribed to,
he said “It will not affect the content of the AfCFTA, in any case
the AfCFTA is an agreement that is ongoing, the terms of engagement
are still being discussed and negotiated.
“The important thing is that Nigeria needs to stand as the
largest economy in Africa and the largest populated countries in
Africa, we need to stand and dictate the terms under which we want
to be in it and this is what we are staying. But what I am saying
is that it is wrong, it is inappropriate that an item that can be
produced in Nigeria should be imported into Nigeria.
“When we get into the AfCFTA issues we will also look at the
details of it, but at this time we are saying we need to create
jobs for our country, for the youths and we need to create jobs, we
yearn for growth and the only way we can really accelerate growth
in a Nigeria between now and next four years is to see to it that
items that can be produced in Nigeria are indeed produced in
Nigeria rather than being imported into the country.” He said
On the $9bn judgement debt, he said “I am not scared at all and
I think it is also important that this question has come up. Since
the news about the judgement broke out late on Friday, we have been
discussing with our counsels, and they have advised that there are
sufficient and strong grounds on the basis of which we could file a
stay of execution and also an appeal against that judgement.
“There are certain anomalies in the process leading to the award
of that contract which is currently being looked into by the EFCC
and I believe that the EFCC themselves have their own investigation
reports about that.
“So, we will follow through and aggressively too on ensuring
that the execution of that judgement is stayed and that the appeal
succeeds at every level both within Nigeria and abroad.
“It is important for me to use this opportunity to assure our
friends, local and foreign investors who called to expressed
solidarity with us, not to express concern but to say that there is
no need for anybody to worry. We know that the implication of that
judgement has some impact on monetary policy and that is why the
CBN is going to step forward and very strongly too to ensure that
we defend the country and defend the reserves of the Federal
Republic of Nigeria.”
Asked why he was at the retreat for ministers, he said “Yes, I
am not one of the ministers but as one of the senior government
officials in the area of policy making, we have also been invited
to come and join the ministers designate in listening to Mr.
President about the policy trust for the next four years.
“I think this is a very brilliant initiative because what it
will do is that it will set the focus, everybody will know what the
assignments and responsibilities will be in specific terms between
now and the next four years.
I am here because as a member of the monetary policy authority,
it is part of the attempts for collaboration between the monetary
and fiscal authorities in Nigeria.”
On the impact he will make at the event, he said “Mine is just
to listen and see who what we are doing at the CBN’s monetary
policy side, is in tandem with what the fiscal authorities are also
coming up with. But I know certainly there are because all we are
saying is that Nigeria yearns for growth, for improved level of
employment in this country and I know at the end of this Programme,
everybody will be on board to say we must reduce the level of
unemployment in Nigeria, we must grow this country and must
increase productivity and output in Nigeria.”