Adedapo Adesanya
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has revealed that importation of milk into the country was not banned, contrary to reports in circulation. It had been reported that the apex bank banned the importation of milk and other dairy products.
But in an official press release published on its website late Friday, the CBN disclosed that there are ongoing blackmail and undue politicization through social media to frustrate the effort of the bank.
Earlier in the week, the CBN Governor, Mr Godwin Emefiele, told operators in the industry that milk and some other dairy products would be restricted from accessing foreign exchange, both at the official and parallel markets if they don’t invest in ranches.
Mr Emefiele said the decision was reached after the CBN met with dairy product manufacturers while reading the communique of the last CBN monetary policy committee’s meeting.
Also, big operators in the industry are reportedly concerned and feel coerced to participate in the CBN’s proposed policy, stressing that the bank failed to check the existing business model that would be suitable for their businesses.
In the press release signed by the Director, Corporate Communications, Mr Isaac Okarafor, the CBN has dismissed reports of the ban on the importation of milk, explaining what the CBN announcement means.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to attempts by some interests, who feel hurt by the planned policy aimed at promoting the local production of milk in Nigeria, to mislead the general public by misrepresenting the ordinarily unassailable case for investments in local milk production and the medium to long-term benefits of the planned policy.
“While we are aware that some of our policies may hurt some business interests, we are thankful to Nigerians for the buy-in and intense interest in the policies of the CBN. As a people-oriented institution, however, we shall remain focused on the overarching and ultimate welfare of the Nigerian masses.
“We, therefore, wish to, reiterate our policy case as it relates to the planned restriction of access to the Nigerian Foreign Exchange market by importers of milk”.
The CBN further stated that its focus remains to ensure forex savings, job creation and investments in the local production of milk.
In the meantime, the key takeaway from the CBN report means the CBN did not ban milk importation but restricted forex supply to importers which technically means importers will source for forex at an expensive rate.
By implication, consumers may have to brace up to pay more for the milk products. Also, since the demand gap for milk cannot be immediately met, it may also encourage smuggling as witnessed with rice and some of the 42 items already placed under Forex restriction.
