The move comes as the naira showed signs of strengthening against the dollar, experiencing a decrease in value at both the official and parallel markets on Tuesday and Wednesday. The official exchange rate window, Nigerian Autonomous Foreign Exchange Fixing (NAFEX), reported a decline in the naira from N750.14 on Monday to N830.97 and N840.53 on Tuesday and Wednesday, respectively. In the parallel market, the naira moved from N1,140 on Monday to N1,145 and N1,160 on Tuesday and Wednesday.
In response to the recent consolidation of the naira’s strength, the House of Representatives Committee on Finance, Loans, and Debt Management has proposed a ban on the importation of all locally produced goods. This recommendation was put forward during the consideration of a report on the 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
The lawmakers noted that despite the unification of the foreign exchange market, there is still pressure on the naira due to the lack of stable foreign reserves resulting from a dearth of exports of locally produced goods. In response, the House Committee recommended an outright ban on the importation of all items locally produced, with corresponding amendments to customs tariffs.
This recommendation, if implemented, aims to bolster the naira’s stability by promoting domestic production and reducing reliance on imported goods. The proposal aligns with the broader goal of achieving economic self-sufficiency and supporting local industries. However, such a measure may also necessitate a careful evaluation of its potential impact on international trade and the availability of certain goods in the domestic market.
