No Dollar Access Imperils Nigerian Retailers, Spurs Prices

A textile shop at the Oshodi market in Lagos. Photographer: Pius Utomi Ekopei/AFP/Getty Images

Mojeed Jamiu is cutting jobs and raising prices to prevent his furniture and clothing store in Lagos from closing after Central Bank of Nigeria Governor Godwin Emefiele restricted foreign currency supply for some imports.

Emefiele in June banned importers from using official foreign-currency channels leaving many to use illegal markets for about 40 categories of goods, including furniture, textiles and rice, the latest in a series of controls since December that have dried up dollar supplies in Africa’s biggest economy and oil producer.

Due to a dearth of local manufacturing, companies like Jamiu’s FM Best Bargain Ltd. have no choice but to import goods.

“One must survive,” the 47-year-old father of three said in low tone in one of his showrooms in a four-story building on a busy road in the Lagos district of Ogba.

Read more: No Dollar Access Imperils Nigerian Retailers, Spurs Prices – Bloomberg Business