'Forex ban on fertiliser import shows forex crisis rife' Daily Trust - Daily Trust

The recent ban imposed by the Central Bank of Nigeria (CBN) on official access to foreign exchange for importation of fertilisers shows that foreign exchange crisis in Nigeria is far from over, an expert has told Daily Trust.

Speaking exclusively to Daily Trust on the implication of the ban, an economist, Dr. Patrick Ikenna, said the move may not be unconnected with recent depreciation recorded in the value of the naira against the dollar and the effort of the CBN to defend the naira from plunging further.

Dr. Ikenna, the Chief Executive Officer of Tech and Tact Hub Limited, also connected the regulatory move with the fall in the price of oil in the international market and reduction in the inflow of foreign exchange into the country.

“Most of our foreign exchange comes from oil receipts. This is shrinking and the CBN is trying to block all leakages and channel foreign exchange into critical imports,” he said.

The expert said may affect the economy negatively considering the enormous demand for fertilisers in the country.

He said importers of fertilisers will now resort to the parallel forex market to source dollars to import fertilisers.

He said it was a wise move the decision was made during the dry season and this may give investors more time to invest in fertiliser plants to meet the huge demand during planting season.

He said fertiliser production domestically remains low and not enough to meet huge domestic demand.

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