Why CBN Plans To Ban Forex For Milk, Other Dairy
The governor of the Central Bank of Nigeria, Godwin Emefiele, has confirmed that the bank has concluded plans to add milk and other dairy products to items on the foreign exchange restriction list.
Emefiele who made this known on Tuesday while addressing journalists at the end of the two-day meeting of the monetary policy committee of the bank said the move by the bank is to help boost local production and investment in ranches.
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According to him $1.2 billion to $1.5 billion is being spent on the importation of milk into the country yearly.
“We believe that milk is one of those products that can be produced in Nigeria. Milk importation has been going on in Nigeria for over 60 years. If you Google West African Milk or Friesland Campina today, they say that they have been importing milk and that they have been in Nigeria for over 60 years.
“Today, the import of milk annually stands at $1.2-$1.5 billion. That is a very high import product into the country. Given that it is a product that we are convinced that it is a product that can be produced in Nigeria.
“The reason some say that our cows are not producing much milk is that our cows roam around, they don’t have water to drink.
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“When the policy on the restriction of FX started, we considered including milk to the list. Then we thought that based on the sentiments that people would show, that we should be careful.”
“When we have a policy, we want people to respect the policy of this country. We are saying the amount we spend on milk in this country is too high, we need to reduce it.
“We are determined to make milk production in Nigeria a viable economic proposition. If you need a loan to acquire land, do artificial insemination, grow grass or even provide water, we will give you.
“We are getting to the end of the road of milk importation in Nigeria. The era of restriction of forex for the importation of milk is very close, sooner than they expect.
The former Minister of Agriculture and Rural Development, Audu Ogbeh, had also said that the yearly national dairy output and demand were estimated at 700,000 metric tonnes and 1,300 metric tonnes, leaving a supply gap of about 600,000 metric tonnes.
