{"id":1878,"date":"2023-06-14T00:00:00","date_gmt":"2023-06-14T00:00:00","guid":{"rendered":"https:\/\/news.chatscopeai.com\/nigeria-lets-importers-buy-dollars-for-43-banned-goods-in-one-fx\/"},"modified":"2026-09-21T17:18:16","modified_gmt":"2026-09-21T17:18:16","slug":"nigeria-lets-importers-buy-dollars-for-43-banned-goods-in-one-fx","status":"publish","type":"post","link":"https:\/\/chatscopeai.com\/news\/nigeria-lets-importers-buy-dollars-for-43-banned-goods-in-one-fx\/","title":{"rendered":"Nigeria Lets Importers Buy Dollars for 43 Banned Goods in One FX Market from 14 June 2023"},"content":{"rendered":"\n

Nigeria unified its foreign exchange market and lifted restrictions on 43 previously restricted items, effective June 14, 2023.<\/p>\n

Nigeria\u2019s central bank has lifted foreign-exchange restrictions on 43 previously banned imports and merged all official currency windows into a single market, effective 14 June 2023<\/strong>.<\/p>\n

The move ends an eight-year regime that forced importers of goods from rice to steel to source dollars on the parallel market at a premium of up to 60 %. It also unifies the naira\u2019s exchange rate, cutting the delivered cost of every dollar-priced shipment by the spread between the old official and parallel rates. The importer pays the difference.<\/p>\n

The 43 items that can now be bought with official dollars<\/h2>\n

The Central Bank of Nigeria removed the ban on 43 tariff lines, including rice (1006.30), cement (2523.29), steel rods (7214.20), and poultry meat (0207.14)1<\/a><\/sup>. The list had been in place since 2015, when the bank argued that local production could replace imports and conserve scarce foreign reserves. Under the new rules, importers of those goods can now apply for dollars at the same rate as exporters and investors, ending the need to pay the parallel-market premium2<\/a><\/sup>.<\/p>\n

\n
\n

From banned to eligible<\/h4>\n
\n Rice (1006.30), cement (2523.29), steel rods (7214.20), poultry meat (0207.14)<\/strong>\n Banned since 2015; now eligible for dollars at the unified rate<\/span>\n <\/div>\n
\n Parallel-market premium<\/strong>\n Was up to 60%; no longer payable on the 43 lines<\/span>\n <\/div>\n
\n Quota and duty<\/strong>\n Unchanged: no new quota or duty set on the 43 items<\/span>\n <\/div>\n <\/div>\n
\n Changed<\/span>\n Unchanged<\/span>\n <\/div>\n<\/figure>\n

The bank said in a statement that the change was designed to \u201celiminate fragmentations in exchange rate, improve price discovery, and enhance investor confidence\u201d2<\/a><\/sup>. It did not set a new quota or duty on the 43 items, so the only limit is the availability of dollars in the unified market.<\/p>\n

A single rate for all trade<\/h2>\n

All foreign-exchange transactions\u2014from school fees to crude-oil sales\u2014are now conducted in the Nigerian Foreign Exchange Market (NFEM), a renamed version of the old Investors\u2019 and Exporters\u2019 window1<\/a><\/sup>. The bank abolished the multiple segments that had existed since 2016, including the Retail Special Secondary Market Intervention Sales and the Small and Medium Enterprises window1<\/a><\/sup>. Every eligible transaction is now processed by deposit money banks at the same rate, determined by willing buyers and willing sellers3<\/a><\/sup>.<\/p>\n

\n
\n

Old windows versus the NFEM<\/h4>\n
\n \n \n
Question<\/th>Until 13 June 2023<\/th>From 14 June 2023<\/th><\/tr>\n <\/thead>\n
Market structure<\/th>Multiple segments since 2016<\/td>One NFEM, renamed I&E window<\/td><\/tr>\n
Who sets the rate<\/th>Per-window intervention rates<\/td>Willing buyer, willing seller<\/td><\/tr>\n
Who processes trades<\/th>Segment-specific channels<\/td>Deposit money banks<\/td><\/tr>\n
Quotes and clearing<\/th>Fragmented<\/td>Order-based two-way quotes, central counterparty<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>\n <\/div>\n<\/figure>\n

The bank also re-introduced order-based two-way quotes, with transactions cleared by a central counterparty1<\/a><\/sup>. This means that an importer of fertiliser and an exporter of cocoa will see the same naira-dollar rate at the same moment, removing the arbitrage that had kept the parallel market alive.<\/p>\n

Who pays the new rate<\/h2>\n

The delivered cost of every dollar-priced import falls by the spread between the old official and parallel rates. Before June 2023, an importer of rice who needed $100,000 had to pay 750 naira per dollar on the parallel market, or 75 million naira. Under the unified rate, the same $100,000 costs 450 naira per dollar, or 45 million naira\u2014a saving of 30 million naira on the shipment2<\/a><\/sup>. The saving is largest for the 43 items that were previously banned; for other goods, the change removes the administrative burden of proving eligibility for a special window.<\/p>\n

\n
\n

Cost of a $100,000 rice shipment, before and after<\/h4>\n
\n At 750\/$, parallel rate<\/span>\n <\/span><\/span>\n 75 million naira<\/span>\n <\/div>\n
\n At 450\/$, unified rate<\/span>\n <\/span><\/span>\n 45 million naira<\/span>\n <\/div>\n <\/div><\/figure>\n

The bank also granted unfettered access to cash deposited in domiciliary accounts, subject to a $10,000 per day<\/strong> transfer limit1<\/a><\/sup>. This allows companies to repatriate profits and pay suppliers without waiting for approval, cutting the time to clear a letter of credit from weeks to days.<\/p>\n

The parallel market and the naira\u2019s new floor<\/h2>\n

The parallel market does not disappear; it now competes with the official rate. Before the reform, the spread between the two rates was as wide as 60 %, giving importers an incentive to source dollars outside the banking system. Under the unified market, the spread has narrowed to less than 5 %, reducing the incentive to bypass the banks4<\/a><\/sup>. The bank said it would intervene only to smooth \u201cdisorderly\u201d movements, not to defend a fixed rate5<\/a><\/sup>.<\/p>\n

The bank also sells $10,000 weekly<\/strong> to each licensed bureau de change, improving liquidity at the retail end6<\/a><\/sup>. This keeps the parallel rate close to the official rate, so that a traveller buying $1,000 for a trip sees the same naira cost as a cement importer buying $1 million.<\/p>\n

What the reform leaves unchanged<\/h2>\n

The bank still requires importers to file Form Q for small-scale imports of $20,000 or less per quarter<\/strong>, supported by a proforma invoice and the importer\u2019s bank verification number1<\/a><\/sup>. It also maintains the list of ineligible transactions, including gambling and arms, which remain banned from the official market1<\/a><\/sup>. The $10,000 daily limit on domiciliary-account transfers is unchanged, so a company that needs to move $100,000 must spread the transfer over ten days.<\/p>\n

The bank also keeps the naira-settled over-the-counter foreign-exchange futures, introduced in 2016 to allow companies to hedge currency risk1<\/a><\/sup>. This lets an exporter lock in a rate for dollars to be delivered in six months, removing the uncertainty that had made long-term contracts difficult.<\/p>\n

The next date on the calendar<\/h2>\n

The bank has not announced a review date, but the reform is part of a broader package that includes the removal of fuel subsidies and the liberalisation of the downstream oil sector. President Bola Tinubu\u2019s administration has said it will use the savings from those measures to fund infrastructure and social programmes, reducing the fiscal pressure on the naira4<\/a><\/sup>. The first test of the new market will come in the third quarter of 2023, when the seasonal demand for dollars to pay school fees abroad peaks. If the unified rate holds, the spread between the official and parallel markets should stay narrow, keeping the delivered cost of imports stable. If it widens, the bank may have to intervene more heavily, raising the risk of a return to the old segmentation.<\/p>\n

Sources<\/h2>\n
    \n
  1. \u21a9<\/a> History of Foreign Exchange Management<\/a> https:\/\/www.cbn.gov.ng\/intops\/FXManagement.html<\/span><\/li>\n
  2. \u21a9<\/a> FX Structure and Management Reform in Nigeria<\/a> https:\/\/www.cbn.gov.ng\/intops\/FXStructureAndManagement.html<\/span><\/li>\n
  3. \u21a9<\/a> Nigeria’s Foreign Exchange Market Reforms and Evolution<\/a> https:\/\/www.cbn.gov.ng\/intops\/FXMarket.html<\/span><\/li>\n
  4. \u21a9<\/a> President Tinubu’s Policy Reforms Boost Corporate Performance<\/a> https:\/\/statehouse.gov.ng\/65223-2\/<\/span><\/li>\n
  5. \u21a9<\/a> Nigeria\u2019s Foreign Reserves Are Not Piggy Bank<\/a> https:\/\/www.thisdaylive.com\/2026\/09\/05\/nigerias-foreign-reserves-are-not-piggy-bank\/<\/span><\/li>\n
  6. \u21a9<\/a> Structure of Nigeria’s Foreign Exchange Market<\/a> https:\/\/www.cbn.gov.ng\/intops\/FXStructure.html<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Nigeria unified its foreign exchange market and lifted restrictions on 43 previously restricted items, effective June 14, 2023.<\/p>\n","protected":false},"author":1,"featured_media":1876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_regnews_id":"35458","_hsn_citations":"[{\"n\":1,\"url\":\"https:\/\/www.cbn.gov.ng\/intops\/FXManagement.html\",\"label\":\"History of Foreign Exchange Management\"},{\"n\":2,\"url\":\"https:\/\/www.cbn.gov.ng\/intops\/FXStructureAndManagement.html\",\"label\":\"FX Structure and Management Reform in Nigeria\"},{\"n\":3,\"url\":\"https:\/\/www.cbn.gov.ng\/intops\/FXMarket.html\",\"label\":\"Nigeria's Foreign Exchange Market Reforms and Evolution\"},{\"n\":4,\"url\":\"https:\/\/statehouse.gov.ng\/65223-2\/\",\"label\":\"President Tinubu's Policy Reforms Boost Corporate Performance\"},{\"n\":5,\"url\":\"https:\/\/www.thisdaylive.com\/2026\/09\/05\/nigerias-foreign-reserves-are-not-piggy-bank\/\",\"label\":\"Nigeria\u2019s Foreign Reserves Are Not Piggy Bank\"},{\"n\":6,\"url\":\"https:\/\/www.cbn.gov.ng\/intops\/FXStructure.html\",\"label\":\"Structure of Nigeria's Foreign Exchange Market\"}]","_hsn_no_sources":"","_hsn_content_hash":"8bc8f7e43f6935d786373e44bba8fd062b6d470c:e38be263275baa5f379c2391fa6b1d563a05d6ac","_yoast_wpseo_focuskw":"foreign exchange market","footnotes":""},"categories":[54,18],"tags":[32],"class_list":["post-1878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-africa","category-trade-regulation","tag-nigeria"],"_links":{"self":[{"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/posts\/1878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/comments?post=1878"}],"version-history":[{"count":1,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/posts\/1878\/revisions"}],"predecessor-version":[{"id":1881,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/posts\/1878\/revisions\/1881"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/media\/1876"}],"wp:attachment":[{"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/media?parent=1878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/categories?post=1878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chatscopeai.com\/news\/wp-json\/wp\/v2\/tags?post=1878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}