Economy
Nigeria Lost $1.4bn to FX Ban on 43 Items in Four Years—Cardoso
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has admitted that the country recorded a revenue drop of $1.4 billion between 2015 and 2019 after imposing foreign exchange (FX) restrictions for import of 43 items over eight years.
The apex bank governor made this known on Friday while delivering his keynote address at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
The apex bank head, during the preparation of his monetary policy thrust, cited available data saying, “Studies have shown that during the period when the 43 items were restricted, there was a 51.0 per cent increase in trade evasion by importers accessing the foreign exchange market, resulting in a revenue drop of approximately $1.4 billion or $275 million annually, between 2015 and 2019.”
One of his early moves after his appointment was the restoration of the 43 items prohibited from access to the foreign exchange (FX) window in 2015, under the administration of his predecessor, Mr Godwin Emefiele following the directive of former President Muhammadu Buhari.
The decision came about eight years after the bank on 23 June 2015 restricted those who deal in the items from accessing forex at the authorised FX window.
Speaking on the 43 items on Friday, Mr Cardoso emphasised that the items were never banned by the government but that the CBN only imposed restrictions on access to foreign exchange in the official market.
He said the aim of the policy at the time was to reduce pressure on the demand for dollars for importation and to encourage local production of these items.
Some of the affected items included rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry, tomatoes/tomato paste, soap and cosmetics, and clothes.
Other items included private aeroplanes/jets, Indian incense, tinned fish in sauce, cold rolled steel sheets, galvanised steel sheets, roofing sheets, wheelbarrows, head pans, metal boxes/containers, enamelware, steel drums and pipes, wire mesh, steel nails, wood particle boards, and panels.
Also affected were security and razor wire, wood particle and fibre boards and panels, wooden doors, furniture, toothpicks, glass/glassware, kitchen utensils, tableware, tiles (vitrified, ceramics), textiles, wooden fabrics, plastic/rubber products, polypropylene granules, and cellophane wrappers.
Subsequently, amidst efforts to achieve its backward integration policy on key items, the CBN added fertiliser and maize to the list of items.
The policy drove importers to source forex in the parallel market for transactions, resulting in additional pressure and demand for FX at the unauthorised window.
Within the period, prices of the food commodities among the restricted items, which are major staple foods among Nigerians, skyrocketed by over 100 per cent.
The upward trend in the prices of commodities has had a negative impact on the purchasing power of many citizens.
However, he said the move resulted in increased demand for foreign exchange in the parallel market, leading to the depreciation of the exchange rate in that segment of the Nigerian Autonomous Foreign Exchange Market (NAFEM) and widening the premium between the parallel and official market.
As a result of this, the CBN governor said revenue from tariffs on goods decreased from a high of approximately $920 million in 2011 to about $250 million in 2017.
“In 2019, the actual tariff on goods stood at $320 million, but counterfactual evidence suggests that as much as $680 million could have been earned in the same year,” he said.
Mr Cardoso said evidence has shown that foreign exchange restrictions had an adverse impact on Nigerian households and contributed to inflationary pressures.
He noted that the reduction in trade restrictions and levies on rice, sugar, and wheat by 50.0 per cent had only a minimal impact on welfare, with a 0.8 per cent improvement, and a mere 0.4 per cent reduction in extreme poverty.
The CBN boss said the benefits of trade gains for the general population were negligible, as the average industry in Nigeria pays 13.7 per cent more for its inputs.
“Lastly, it is important to note that trade policy is primarily the responsibility of the fiscal authorities, and delving into such matters falls outside the purview of the CBN,” he said.
By Adedapo Adesanya
The Minister of Finance, Mr Wale Edun, says Nigeria’s crude oil production has risen to 1.8 million barrels a day, contrasting with available production data.
Speaking in an interview with Reuters on Wednesday on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington D.C., the Minister said the current oil output would generate fiscal breathing space that will allow the government to support vulnerable households as it ploughs ahead with reforms.
Nigeria, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC), is Africa’s largest oil producer.
Mr Edun said rising crude production was positive for Nigeria’s revenue, foreign exchange and the country’s fiscal situation.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he told the publication, noting that support would be targeted, adding “there is no thought of any return or retardation to broad untargeted subsidies.”
Mr Edun also said the Bola Tinubu-led administration was also committed to continuing its reform programme.
“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” he said.
Despite the 1.8 million barrels per day figure claim, Business Post reports that production data for March 2026 from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria attained 1.546 million barrels per day, made up of 1.382 million barrels per day of crude, 42,809 barrels per day of blended condensate and 120,442 barrels per day of unblended condensate.
The average crude production represents 92 per cent of the OPEC quota, which is fixed at 1.5 million barrels per day.
By Adedapo Adesanya
The Securities and Exchange Commission Nigeria (SEC) has unveiled a new regulatory framework that would allow companies operating within free trade zones to raise capital from the Nigerian public, subject to strict eligibility and disclosure requirements.
The proposal, titled New Rules for Public Offering of Securities by a Free Trade Zone Entity, is anchored on provisions of the Investments and Securities Act (ISA) 2025 and is designed to integrate free trade zone enterprises into the domestic capital market while strengthening investor protection.
Under the proposed rules, only entities duly licensed by recognised free zone authorities, such as the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority, will be eligible to issue shares to the public.
The commission clarified that the rules will apply strictly to free trade zone entities (FTZEs), excluding companies operating outside designated zones, even if licensed by zone authorities. It also emphasised that no FTZE will be permitted to offer securities to the public without prior approval from the Commission.
To qualify, an FTZE must demonstrate a minimum of three years’ operating track record immediately preceding its application, with at least two years of independent business activity within a free trade zone. Additionally, such entities are required to have competent senior management and a minimum paid-up share capital of not less than N7.5 billion.
The SEC said FTZEs seeking to access the capital market must subject themselves to Nigeria’s tax laws and comply fully with ongoing disclosure and reporting obligations applicable to publicly listed companies.
The proposed framework also outlines extensive registration requirements. Issuers will be required to submit evidence of licensing by a free zone authority, constitutional documents, and verified details of shareholding structure and board composition.
A “No Objection” letter from the relevant free zone authority will also be mandatory, alongside a commitment to list the offered shares on a registered securities exchange.
The SEC noted that the rules are intended to provide clarity on eligibility criteria and operational conditions for FTZEs seeking to conduct public offerings, thereby deepening the capital market and aligning free zone operations with national financial system standards.
By Aduragbemi Omiyale
Shareholders of Guinness Nigeria Plc will share about N4.38 billion as an interim dividend for the first quarter of 2026, the board has disclosed.
This cash reward amounts to N2.00 per share, as the company has shares outstanding of 2,190,382,819 on the floor of the Nigerian Exchange (NGX) Limited.
The brewer stated that the interim dividend would be paid to investors whose names appear on the register of members as of the close of business on April 20, 2026.
The dividend payout is being proposed following the sustained profitability reflected in the unaudited financial results of the company in the first three months of this year and its “strong performance in FY 2025.”
It would be “paid from distributable profits in accordance with Sections 426–428 of the Companies and Allied Matters Act (CAMA) 2020.”
Analysis of the performance of the brewery giant between January and March 2026 showed that revenue grew by 4 per cent on a year-on-year basis to N122.77 billion from N118.34 billion in the same period of last year, while the gross profit contracted to N43.48 billion from N44.52 billion due to prevailing cost pressures within the operating environment.
The company’s operating profit also shrank to N17.18 billion from N18.00 billion in the first quarter of 2025 due to elevated marketing & distribution costs and administrative expenses.
However, the reduction in net finance costs to N1.43 billion from N7.72 billion in Q1 of 2025 helped the organisation to grow its post-tax profit to N10.39 billion in the period under review versus the N7.03 billion recorded in the corresponding period of last year.
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