The Central Bank of Nigeria (CBN) yesterday gave Friesland Campina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria Plc (MSK only) and Integrated Dairies Limited the approval to import milk and dairy products.
In a circular issued by the CBN dated February 11, 2020, and signed by the director, trade and exchange department, Dr Ozoemena Nnaji, the bank said the move was aimed at bridging the supply gap of the product as the government pursues its backward integration strategy to make the country self-sufficient in milk production.
“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.
“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: Friesland Campina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria Plc (MSK only) and Integrated Dairies Limited.”
It stated that the firms had started investments in local milk production.
“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,” it added.
Commenting on the circular, CBN’s director, corporate communications department, Mr. Isaac Okorafor, said the apex bank engaged the six companies because they showed sufficient willingness and ability to support the objectives of the CBN.
He also said CBN’s objective in the dairy products sector was to increase milk production in the country from the current figure of 500,000 metric tonnes to about 550,000 metric tonnes within the next 12 months.
In addition to facilitating easier access to funding for dairy investors, he said it was the desire of the management of the CBN to ensure that the country conserved foreign exchange, trigger economic growth and boost employment opportunities in the sector.
It would be recalled that the CBN governor, Mr. Godwin Emefiele had in July 2019 announced the plan to restrict access to foreign exchange for importation of milk into the country.
He said the restriction was aimed at boosting local milk production and job creation.
