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UPDATE 1-Nigeria's central bank told to stop giving forex for food imports

Published 10/09/2020, 20:53
Updated 10/09/2020, 20:54
© Reuters.

(Adds details, context)
ABUJA, Sept 10 (Reuters) - Nigerian President Muhammadu
Buhari on Thursday directed the central bank to stop issuing
foreign exchange for food and fertiliser imports, according to a
statement by his spokesman.
It follows a similar order the president issued last year
that the nominally-independent bank only partly followed, with
some food importers still receiving foreign exchange.
But Thursday's directive will completely ban providing
foreign currency for all imported food and fertiliser, the
spokesman told Reuters. "Nobody importing food should be given
money," Buhari said.
Since his election in 2015, Buhari has sought to cut foreign
imports, particularly agricultural products. Expanding Nigeria's
farm sector is a key pillar of his economic policy.
But the bans on imports like rice have seen prices surge,
sparking widespread frustration.
Nigeria's foreign reserves have been battered as the central
bank spends billions of dollars on costly programmes such as
propping up the local naira currency despite double-digit
inflation.
There was no immediate, public reaction from the central
bank to Buhari's comments, though its governor was present at
the meeting where the order was given.

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