Milk producers in the country have said that foreign exchange restriction on milk imports would ultimately lead to higher prices of milk products for consumers.
“Of course, it will definitely affect prices. There is a difference of about N55 or N60 per dollar between the exchange rate on the black market and the interbank market,” said the General Manager, External Affairs, PZ Cussons, Mohammed Tahir at a dairy Congress in July.
The Central Bank of Nigeria (CBN) has said that four dairy firms have commenced the process for the local production of milk.
The CBN Governor, Godwin Emefiele made this known in Abuja on Thursday. He said the companies are FrieslandCampina WAMCO, Neon Agro, CHI Limited and Irish Dairy. The companies, he noted have all expressed interest to invest in Bobi Grazing Reserve in Niger State.
Bobi Grazing Reserve located in Mariga Local Government Area is part of 26 Grazing Reserves gazette under a livestock development initiative by the Niger State government in partnership with the CBN.
The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has said that the apex bank will soon add more items to the list of 43 items that are barred from receiving foreign exchange (forex) from banking sources.
Emefiele made the statement on the sidelines of the presidential retreat for new ministers in Abuja on Monday. He said that banks will not go back on the directive of President Muhammadu Buhari on food importation into the country.
President Muhammadu Buhari on Tuesday ordered the Central Bank of Nigeria (CBN) to stop making foreign exchange available to food importers, saying that the directive is to ensure the steady improvement in agricultural production and to attain full food security.
The statement was made while the president hosted his party’s, All Progressive Congress (APC) governors to eid-el-Kabir lunch at his country home in Daura, Kastina State.
Former Education Minister and Vice-President of the World Bank’s Africa division, Oby Ezekwesili has come out against the new Central Bank’s planned policy to restrict foreign exchange to milk importers as a way to boost local production.
Ezekwesili, in a series of tweets from her official twitter handle, described the new CBN plan as policies borne out of vindictiveness.
The Federal Government is said to be considering placing a ban on the importation of milk into the country.
The Central Bank Governor, Mr Godwin Emefiele, who disclosed this to the media in Abuja on Tuesday following the Monetary Policy Committee (MPC) meeting, said the Federal Government would soon put restrictions on the importation of milk to the country.
The CBN Governor disclosed that the importation of milk gulps up between $1.2bn and $1.5bn annually, adding that it was unacceptable.
The Central Bank of Nigeria (CBN) is said to have concluded plans to restrict foreign exchange availability for dairy imports in a bid to boost local production and investment in ranches.
Sources privy to discussions held between the CBN Governor, Godwin Emefiele and milk producers said that he told them that foreign exchange would soon be restricted for dairy imports at both the official exchange and parallel markets if they do not invest in ranches, a move he said would reduce the ongoing farmers and herders conflict in the country.
