CBN clarifies policy on forex restriction for milk importation

.Says milk importation is not banned

.Urges Nigerians to restrict blackmail tactics of interested individuals

By Motolani Oseni

Due to continual criticism of its recent policy on forex restriction for milk importation in the country, the Central Bank of Nigeria (CBN) has clarified its stand that the decision has no political undertone.
The apex bank made the clarification in a statement released on Friday, where he explained that the bank had offered milk importers low-interest loans to begin local production since 2016 but the offer was treated with “imperial contempt.”

He noted that it is possible to produce milk locally in Nigeria because the loans are still available to interested manufacturers.

Reacting to tweets condemning the new forex policy on its official twitter handle, the CBN said: “Nigeria and the welfare of all Nigerians come first in all our policy considerations.

“Our focus remains ensuring forex savings, job creation and investments in the local production of milk.

“Milk importation is not banned. Indeed, the CBN has no such power. All we will do is to restrict the sale of forex for the importation of milk from the Nigerian foreign exchange market.

“About three years ago, we began a policy to encourage backward integration to conserve foreign exchange and create jobs for our people. Included in this policy package was the introduction of the highly successful policy which restricted the sale of forex from the Nigerian foreign exchange market for the importation of some 43 items goods that could be produced in Nigeria.

“Arising from the success of the restriction policy, we approached some milk importers, like we did for rice, tomato and starch and asked them to take advantage of CBN’s low-interest loans to begin local milk production instead of relying endlessly on milk imports.

“Today, although there have been some successful attempts at producing milk locally, the vast majority of the importers still, treat this national aspiration with imperial contempt.”

Acknowledging that the policy could hurt some business interests, the CBN urged Nigerians to restrict the blackmail tactics of individuals who have vested interests in milk importation.

Meanwhile, an Agric Economist, Mr Nnamdi Infenkwe, has said the plan by the CBN to ban the importation of milk products is long overdue in view of the drain on the nation’s resources.

Infenkwe, who is Senior Manager, Nissi Agro Alide Services, said this in Lagos, yesterday.

He said immediately enforcement of the ban would force the milk producers to immediately commence backward integration as agreed three years ago with the CBN.

He said the ban became necessary after major dealers of milk products in Nigeria failed to ensure that they produce milk locally, three years after meetings were held with them in that regard.

According to him, Nigeria currently spends between $1.2 billion and $1.5 billion on importation of milk products annually, a situation he declared was no longer acceptable.

It would be recalled that the new forex policy was announced in Abuja on Tuesday by the CBN Governor, Mr Godwin Emefiele.

Emefiele said the item would soon be part of the 43 items delisted by the CBN from accessing official foreign exchange market.

He added the apex bank was ready to give loans to the importers to acquire land, promote the artificial insemination of the cows or production of water to make milk in Nigeria.