He also dismissed calls for the devaluation of the naira amid growing domestic and international concerns about the tough outlook facing the Nigerian economy after the collapse of oil prices last year.
Speaking in an interview with the London-based Financial Times (FT) newspaper, Emefiele noted that demand management of forex arising from limited supply and the exclusion of certain items from accessing forex from the official market was working, adding that there was no ban on the importation on the said items.
Last month, the CBN had listed importers of 41 items and barred them from accessing forex from the interbank market, arguing that the products could be produced in the country.
However, the decision has been criticised by some analysts and the Lagos Chamber of Commerce and Industry (LCCI), who have contended that the policy was in the near-term inflationary, could negatively impact retail trade and lead to job losses.
“First of all, when you talk about how it will increase prices or increase inflation, any option (devaluation) or (currency curbs) you adopt will cause inflation, right? If we adjust our currency further, which is what I have heard people talking about, it will still lead to inflation, it will lead to an increase in prices.
What we are saying is that those 41 items are items that can be produced in Nigeria. Having done an adjustment of the naira by almost 22 per cent, now we are also looking at the supply side, that is our reserves and our revenues. Yes, we are constrained as a result of the drop in crude prices.
But let me tell you, these are not import restrictions, they are foreign exchange exclusion… The president came on board and said that we will work very hard to reduce importation of petroleum products by ensuring that our refineries work. Our refineries are working now. Warri and Port Harcourt have started producing, they have not obtained the optimal capacity but they will. Kaduna refinery will start working this month,” Emefiele said.
The CBN boss said that given the major hit to state revenues for the continent’s top oil producer, there was no way to avoid “bad times” for now. But he insisted his policies — and not the naira devaluation traders and analysts call for — would curb inflation and bolster depleted foreign reserves.
