CBN: Forex Is Available For Milk Producers, Not Importers

The foreign exchange (forex) restriction on milk importation by the Central Bank of Nigeria (CBN) has been greeted with so much criticism as though the measure is intended to promote foreign business interests. 

At the end of its last Monetary Policy Committee (MPC) meeting, the apex bank’s Governor, Godwin Emefiele, announced that importers of milk, a widely-consumed item, like rice, will no longer receive forex allocation from the CBN. Simply put, importers of milk, without exception, have been asked to look beyond the CBN for the forex to import the commodity. The measure did not imply that milk importation is banned as was initially perceived in some quarters. 

The CBN, consistent with its avowed determination to keep the public abreast of its policies, wasted no time in clarifying the underlying principle that informed the decision. It pointed out that the bank has not banned milk importation: neither does it have the power to do so. It said: “For the avoidance of doubt, milk importation is not banned. Indeed, the CBN has no such power. All we will do is to restrict sale of forex for the importation of milk from the foreign exchange market. “We wish to reiterate that we remain ready and able to provide the needed finance to enable investors who genuinely want to engage in milk production.”

(The Nation)