CBN says school fees, medicals remain eligible for FX

Contrary to speculations and reports that school fees and medicals have been added to the 41 items restricted from accessing foreign exchange (FX), the Central Bank of Nigeria (CBN) on Friday clearly stated that the two items remain eligible for FX allocation.

“The CBN wishes to clarify to the general public that it has not stopped the allocation and sale of FX for purposes of paying school fees and settlement of medical bills overseas,” a statement signed by Ibrahim Mu’azu, director, corporate communications, CBN, said, adding that members of the public should discountenance such misinformation.

However, the CBN urged all genuine users desiring to obtain FX for the above-mentioned purposes to freely approach their banks with their requests and appropriate documentation.

To keep the naira exchange rate within the N197/$ and a band of +/- 3 percent, the CBN has been engaged in aggressive demand management with the disqualification of 41 items from accessing the FX market.

“The reasons adduced for this policy tend to be more of nationalist than economic. We however believe that trade policies are better tools to use in discouraging the importation of goods whose import hurt local manufacturers,” Johnson Chukwu, managing director, Cowry Asset Management Limited, said.

Chukwu said the country needed a cocktail of policies, which will include exchange rate adjustment, creating windows of investment for long-term funds through concessioning of commercially viable infrastructure, full deregulation of the downstream petroleum industry and stimulating investment in sectors where Nigeria had comparative advantage, as well as investing heavily in social infrastructure such as health, education, security, among others.

“It is such holistic approach to economic management that will change the structure on Nigerian economy and wean it from dependence on oil for export earnings,” he said.

HOPE MOSES-ASHIKE