Finally, CBN begins forex restriction on milk importation

The Central Bank of Nigeria (CBN) has  finally begun restriction of forex on importation of milk and other dairy products in bid to encourage local production.

The bank which announced the decision in a notice posted on its website on Tuesday, however, exempted five companies from the restriction.

“As part of efforts to increase local production of milk, its derivatives and dairy products, the Central Bank of Nigeria has engaged with some companies in the industry who have keyed into the bank’s backward integration program to enhance their capacity and improve local milk production,” the notice read

“Accordingly, all authorised dealers are to note that all Forms ‘M’ for the importation of milk and its derivatives shall only be allowed for the following companies:

Friesland Campina WAMCO Nigeria
Chi Limited
TG Arla Dairy Products Limited
Promasidor Nigeria Limited
Nestle Nigeria Plc (MSK only)
Integrated Dairies Limited

“For the avoidance of doubt, all established Forms ‘M’ for the importation of milk and its derivatives for companies other than the above for which shipment has not taken place should be cancelled immediately.”

The companies were exempted because they have begun investments in local milk production of milk in line with the apex’s bank’s backward integration plan.

CBN governor, Godwin Emefiele, had in July last year announced plans to restrict forex for milk importation

In August 2019, President Muhammadu Buhari directed the bank to restrict forex for food importation saying the directive is to ensure steady improvement in agricultural production and attainment of full food security.