FG’s plan to stop forex on food importation to boost reserve – Experts

Some financial experts, on Thursday, backed the Federal Government’s move to stop foreign exchange on food importation, saying it will boost the nation’s foreign reserve and local production of food items.

Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun State, said in Lagos that one of the ways to protect the value of the naira was to curb importation.

“One of the ways to protect the value of the naira is to curb importation. So the President was right in taking that decision,’’ Tella said.

He, however, said that consumers would suffer in the immediate term because prices of food items would increase.

Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix

Investment and Communications, said the philosophy of stopping food importation was to revolutionise agriculture, Nigeria’s hitherto economic life wire.

Oni, however, said it requires a strong political will to implement such a policy.

He said he was in support as long as it would not cause extreme hardship, noting that the benefits of the policy outweigh challenges in the medium and long run if properly handled.

“Why must we import what we can produce, thereby depleting our external reserves,’’ he asked.

Buhari had recently directed the apex bank to stop providing foreign exchange for importation of food into the country. This is in order to achieve steady improvement in agricultural production, and attainment of full food security. (NAN)