The Central Bank of Nigeria (CBN) recently announced a ban on the importation of maize/corn1. This ban adds maize to the list of 41 other products some of which include rice, cement, margarine, and palm kernel that had earlier been banned2. The embargo comes as a means to further encourage local production, stimulate economic growth as well as secure local jobs and livelihoods. Available data shows that Nigeria imported 400,000 tons of maize in 2019 the same as it did in 20183. However, forex restrictions on the importation of rice, coupled with the closure of the Nigerian land borders to neighboring countries, has seen the country move from a major importer to the largest producer of rice in Africa.4 By extension, it is expected that the addition of maize to the forex restriction list will help to stimulate its domestic production and thus reduce or eliminate dependence on imported maize. Consequently, this effort is also expected to limit domestic demand for forex and curb the exchange rate volatility.
August 12, 2020
Nigeria Economic Update (Issue 28)
Related
Public Debt In A Growing Economy And Implications For The Nigerian Case
The
paper analyses the impact of public debt on an economy using Nigeria as case
study and identifies steady states in the model of a closed economy.
Nigeria Economic Update (Issue 20)
Power sector
analysis shows an increase in power generated by 15.5 percent from 3639.2 megawatt
to a peak of 4196.2 megawatt between April 22, 2016 and April 29, 201612,
albeit a sharp fall to 25.2 megawatts on April 23, 2016 following a system
collapse13. In a bid to attain the targeted 10,000 megawatts by 2019,
the Federal Government is set to complete the ongoing 47 power transmission
projects across the country, which would boost power supply14.
However, the delays in passing the budget into law is a major constraint to the
completion of the projects. Thus government needs to speed-up the passage of
the 2016 budget to provide the funds to complete the projects.