CBN to ban $1.2bn annual forex for milk, local operators complain

- The Central Bank of Nigeria (CBN) may have concluded plans to add milk and other dairy products on forex restriction list

- The apex bank said the move to do so was out of the need to encourage local production of same products

- Local operators are, however, concerned that the CBN's move could be negative for their operations in the country

The Central Bank of Nigeria might have finalised plans to add milk and other dairy products on the foreign exchange restriction list with the aim to boost investments in local ranches.

According to The Guardian, the CBN governor, Godwin Emefiele, said that the product would be struck out of the list so that investment in the sector can help the ongoing farmers-herders crisis.

Goods and products on the apex bank’s foreign exchange enjoy exchange rates waiver in a way that help imports to improve the economy.

READ ALSO: Shehu Sani speaks on reasons north is tolerating FG, presidency

The Guardian also reported that the operators might see the policy as harsh as the CBN do not have any established model on ground.

There have been two meetings between the apex bank and dairy products manufacturers, with the operations complaining that the CBN is using monetary strategy to force the policy on them.

They said that using ranching would affect their business strategy, adding that it would have to be done another way for it to be successful.

The operators also argued that milk is important for the production of other local products in the country and that the 5% import duty should remain.

It should be noted that minister of agriculture and rural development, Audu Ogbeh, once said that milk worth $1.2 billion was being imported into the country annually.

He said that an average cow in the country gives less than 1 liter milk when it is compared to other countries where a cow produces 100 liters daily.

PAY ATTENTION: Download our mobile app to enjoy the latest news update

Meanwhile, Legit.ng earlier reported that the naira on Wednesday, June 26, in Lagos gained marginally against the dollar at the parallel market closing at N359.3 to the dollar.

The naira shed 20 kobo from N359.5 traded on Tuesday, June 25, while the pound sterling and the euro exchanged at N463 and N408, respectively.

NAIJ.com (naija.ng) -> Legit.ng We have updated to serve you better

Nigerians set 2nd term agenda for President Buhari | Legit TV

Source: Legit.ng