UPDATE 2-Nigeria central bank ask banks to stop processing import documents for maize

(Adds data on maize import, background)
By Alexis Akwagyiram
LAGOS, July 13 (Reuters) - Nigeria's central bank told
lenders on Monday to stop processing new trade documents for
maize imports with immediate effect, a week after it unified its
multiple exchange rates in an attempt to ease dollar shortages
and conserve its dwindling reserve.
In a circular on Monday, the bank said it wanted to support
the increase in local maize production, stimulate the economy
and safeguard rural livelihoods lost as a result of the COVID-19
pandemic.
It asked lenders to submit existing import documents, called
Form M, opened for importation of maize by Wednesday.
Form M is a document to be completed by all importers into
Nigeria. The documentation also enables lenders submit bids to
the central bank for dollars to pay for imports.
Bankers estimate forex demand of around $2 billion from
importers with past due obligation. Meanwhile the government is
seeking to fund a balance of payment gap of around $14 billion
in 2020, according to the central bank.
Dollar demand has been swelling and piling pressure on the
naira. Importers with past due obligations have scrambled for
hard currency while providers of foreign exchange, such as
offshore investors, have exited.
The oil price crash caused by the coronavirus pandemic has
exacerbated a shortage of dollars for Nigeria, whose reserve has
declined 20% to $36.13 billion over the last year.
Last week the naira eased on the official market, losing
5.5% against the dollar after the central bank weakened the
currency, in its second adjustment in six months. Data from the U.S. Department of Agriculture estimate
Nigeria's maize imports at 400,000 metric tons (MT) for 2019/20
against a consumption of 10.7 MT over the forecast period.
Nigeria imports maize mainly from the U.S.
The central bank in August told lenders to stop processing
milk imports on a credit basis after it said it would ban access
to forex for dairy to spur local production. It later lifted
forex restrictions for milk imports for six firms.