Nigeria Prohibits Foreign Exchange Settlement of Textiles Imports

On March 5, the Central Bank of Nigeria announced a ban on foreign exchange settlement of textiles imports, prohibiting all importers of textiles and other clothing materials from applying for foreign exchange settlement. This policy is aimed at revitalizing Nigeria's textile industry, cotton and garment industry, thereby increasing the number of employment opportunities in Nigeria and promoting Nigeria's economic development. The President of the Central Bank of Nigeria held a conference with Nigerian textile industry on March 5, and announced that all textile prohibition orders on foreign exchange settlement would come into effect immediately. Banks and foreign exchange dealers involved in Nigeria's foreign exchange market need to follow instructions not to provide foreign exchange settlement and sale to textile importers. The central bank will also provide low-interest financial credit to the textile industry, assist Nigeria's textile industry in equipment replacement and upgrading, and promote the production of higher quality textiles and garments.