Adedapo Adesanya
By Adedapo Adesanya
The Presidency has addressed the controversy surrounding President Muhammadu Buhari’s directive to stop the provision of foreign exchange by the Central Bank of Nigeria (CBN) for food imports, stating that the order does in no manner amount to a ban on importation of food into the country.
While in his home town Daura, Katsina State last week, Mr Buhari had said he told the apex bank chief, Mr Godwin Emefiele, not to “give a cent to anybody to import food into the country,” in a bid to conserve foreign exchange for use in the diversification of the economy.
In a letter written by the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, in response to a Financial Times report, which suggested that the ban would cause food shortage and high prices in the country, the presidential spokesman said it was not correct to say the government was restricting food import.
The letter to the Editor of Financial Times said President Muhammadu Buhari’s recent disclosure that the Central Bank of Nigeria had been asked to stop providing foreign exchange to food importers did not imply a ban on food importation by the government.
In the statement which was made available to the media in Abuja on Sunday, reacting to the Financial Times article titled, ‘Muhammadu Buhari sparks dismay over policy shift on food imports’ the Presidency clarified that, “To be absolutely clear, there is no ban – or restriction – on the importation of food items whatsoever.”
“President Buhari has consistently worked towards strengthening Nigeria’s own industrial and agricultural base. A recent decision sees the Central Bank maintain its reserves to put to use helping growth of domestic industry in 41 product sectors rather than provide FOREX for the import of those products from overseas.
“Should importers of these items wish to source their FOREX from non-government financial institutions (and pay customs duty on those imports – increasing tax-take, something the FT has berated Nigeria for not achieving on many occasions), they are freely able to do so.
“Diversification of FOREX provision towards the private sector and away from top-heavy government control, a diversification of Nigeria’s industrial base, and an increase in tax receipts, are all policies one might expect the Financial Times to support.
“Yet for reasons not quite clear, the author and this newspaper seem to believe the President’s administration seeks to control everything – and yet do so via policies that relinquish government control.
“We look forward to the next installment of Mr (Neil) Munshi’s bizarre and puzzling article series.”
Financial Times had in the report last week claimed that President Buhari’s directive had sparked dismay over policy shift on food imports.
According to the report, the President was “coming under fire after calling for the central bank to stop providing the foreign currency needed to pay the country’s vast food import bill.”
The report added: “But he drew withering criticism from economists and analysts who said the move threatened to send food prices skyrocketing and brought the central bank’s independence into question.
