CBN Presents New Forex Bidding to Support Companies Demanding Forex

The Central Bank of Nigeria (CBN) has revealed a proposition to create a new foreign exchange bidding regime to directly support companies in Nigeria demanding forex supply.

The forex bidding initiative is distinctly focused on firms engaged in local production, which ultimately results in employment creation.

The CBN Governor, Godwin Emefiele disclosed this during the launch of the 100 for 100 Policy for Production and Productivity (PPP), in Abuja on the 31^st January 2022.

Emefiele explained that improvement of manufacturing sector and employment creation in the economy are potential benefits, which will be derived from the new forex regime initiative.

He further stated that the apex bank of Nigeria will sustain its support of Naira and ensure seamless supply of forex to manufacturers.

His words “We will soon unveil a new FX bidding regime that is market-driven and supports companies that accord utmost priority for our local production and job creation drive.”

 “We will continue to provide all the needed support, both in Naira and dollars specifically for the importation of plants and equipment to actualize these investments,”

“The foreign exchange support will be solely for the importation of spares, plants and equipment needed to increase production capacities of these companies,”

The CBN governor also noted that companies inquiring are expected to formally submit an application via their banks who will validate their applications before the data would be forwarded to the distinct portal created by the CBN.

Notably, the stated that firms who utilize bank’s import substitution policy and have major significance on job growth will be given precedence