Nigeria Imports Surge After CBN Lifts Ban; Senate Urges Fiscal Prudence Despite Oil Revenue Gains

Nigerians spent N1.39 trillion importing previously banned items in Q4 2023 after CBN lifted restrictions, up from N1.29 trillion in Q3. Total 2023 imports hit N4.29 trillion, double the 2022 figure.

Main imported items included crude palm oil, vegetable products, animal products, meat, fats/oils, rubber/plastics, and textiles.

CBN ban was damaging Nigeria's trade policy; lifting it has eased pressure on the naira and could lift 1.3 million people out of poverty per World Bank.

But Senate warns against increasing budget size despite naira devaluation greatly boosting dollar-denominated oil earnings. Says use gains to reduce deficits and loans instead.

Economists say volatility makes budget impact unclear. Could raise revenues but also costs. May need to curb spending, adjust policies, or float supplementary budget.