..Restates Commitment To Food Security
Yemisi Izuora
The Central Bank of Nigeria (CBN), says it will restrict Foreign Exchange to milk importation but will make interventions to genuine investors who want engage in local food production.
The Bank is trying to clear the air with regard to reactions trailing its decision to withdraw Forex to milk importers which was unfortunately misconstrued by some persons who argued that the CBN has no right to ban milk importation.
“We therefore wish to, once again, reiterate our policy case as it relates to the planned restriction of access to the Nigerian Foreign Exchange market by importers of milk:
According to the CBN, Nigeria and the welfare of all Nigerians come first in all our policy considerations. Being an apolitical organization, we do not wish to be dragged into politics. Our focus remains ensuring forex savings, job creation and investments in the local production of milk.
For over 60 years, Nigerian children and indeed adults have been made to be heavily dependent on milk imports. The national food security implications of this can easily be imagined, particularly, when it is technically and commercially possible to breed the cows that produce milk in Nigeria.
“About three years ago, we began a policy to encourage backward integration to conserve foreign exchange and create jobs for our people. Included in this policy package was the introduction of the highly successful policy which restricted sale of forex from the Nigerian foreign exchange market for the importation of some 43 items goods that could be produced in Nigeria.
Arising from the success of the restriction policy, we approached some milk importers, like we did for rice, tomato and starch and asked them to take advantage of CBN’s low-interest loans to begin local milk production instead of relying endlessly on milk imports.” the Bank explained.
Today, although there have been some successful attempts at producing milk locally, the vast majority of the importers still treat this national aspiration with imperial contempt, it added.
“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 Nigerian 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 CBN said.
It further stated that the ongoing resort to blackmail and undue politicization through the use of social media attacks can only serve to strengthen its resolve to wean the country from the clutches of powerful and highly influential traders and dealers who have kept the masses of our people hostage to foreign consumption and condemned our youths to perpetual unemployment.
“We call on Nigerians to enlist in this vanguard to take our economy back from vested interests, make our country a productive economy and create jobs for our teeming youths.” the Bank urged.