The Central Bank of Nigeria recently announced some changes regarding the Importation of milk and it’s derivatives in Nigeria.
The Apex bank in it’s circular issued on February 11, 2020 stated a total ban on the importation of milk and it’s derivatives while exempting six (6) companies from the ban.
This information should be handy for officers and men of Nigeria Customs Service (NCS), importers and intending importers in Nigeria, those involved in local milk production and the entire public.
In today’s current affairs, iWanSabi has just summarized all you need to know about the new CBN ban on milk importation and diary importation in Nigeria:
1. The ban was confirmed in a circular issued by the CBN dated February 11, 2020, and signed by the Director, Trade and Exchange Department, Dr Ozoemena Nnaji.
2. The apex bank said the approval was given in line with its objective to increase and improve the local production of milk, its derivatives and other dairy products in the country.
3. Six dairy companies were exempted from the ban on importation of milk and diary products.
4. The six diary companies exempted by CBN are FrieslandCampina WAMCO Nigeria; Chi Limited; TG Arla Dairy Products Limited; Promasidor Nigeria Limited; Nestle Nigeria PLC (MSK only) and Integrated Dairies Limited.
5. The Apex bank explained that the six companies were exempted because they showed sufficient willingness and ability to support the objectives of the CBN.
5. Based on the new development, all Forms ‘M’ for the importation of milk and its derivatives by authorised dealers would only be allowed for the above six companies.
6. According to government statistics, Nigeria’s current milk production stands at about 500,000 metric tonnes per year.
7. The CBN revealed that the above number leaves a demand gap of 1.7 million tonnes, which is filled through importation that causes a capital flight of about $1.3bn.
8. Following the ban, the CBN further revealed that it’s objective in that 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.