Recently the Central Bank of Nigeria (CBN) retracted its intention to restrict allocation of foreign exchange (forex) for milk importation into the country following massive umbrage that greeted the plan by discerning citizens and stakeholders.
According to the CBN governor, Mr. Godwin Emefiele, in a bid to develop the local dairy industry, there is the need to protect such by stopping the importation of milk and save the nation good foreign exchange.
In the wake of the announcement, several people, including some key stakeholders such as the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce (LCCI) and Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN) faulted the decision of the apex bank and appealed to it to retrace its steps on the proposed policy while some economic experts lauded the policy direction.
Segun Ajayi-Kadir, Director-General of MAN said the addition of milk to restricted items would have a negative impact on the economy that may lead to downsizing, reduce government revenues and the manufacturing sector’s contribution to Gross Domestic Product (GDP) and lamented that CBN’s decision was taken unilaterally without consultation with operators in the dairy industry.
The national secretary of MACBAN, Baba Othman Ngelzarma, observed that although a desired long-term outcome whereby local production would substitute for importation, implementation of such a policy would require a robust strategy that addresses underlying issues, the National Livestock Transformation Plan of (NLTP) as an integrated plan will holistically solve the historic challenges that have deprived the pastoralists from producing high quantity and quality beef and dairy products demanded by the Nigerian market.
MACBAN advised CBN to retrace its steps and take a productive role that does not undo the work done to date.
The CBN, through its Director of Corporate Communications, Mr. Isaac Okoroafor, reacted to concerns on the issue, stating that “the attention of the Central Bank of Nigeria (CBN) has been drawn to attempts by some interests, who feel hurt by the planned policy aimed at promoting the local production of milk in Nigeria. While we are aware that some of our policies may hurt some business interests, we are thankful to Nigerians for the buy-in and intense interest in the policies of the CBN, as a people-oriented institution, however, they shall remain focused on the overarching and ultimate welfare of the Nigerian masses.”
Milk is very essential to the growth and development of the Nigerian child. It provides valuable nutrients for children’s need during their development and its consumption is essential to maintaining good health and is a great source of calcium for all ages.
Rather than shelving the plan, we advise that the apex bank should re-strategize and engage more stakeholders in the milk industry before coming up with the plan again.
However, the planned restriction of forex for milk importation is rather premature at this time and therefore we wish to advise that the apex bank should rather invest in local production of milk as well as allocate foreign exchange for milk importation so that the market will not be stifled of quality milk products which are very essential sources of protein.
It is imperative for the CBN to rethink its plan to jettison the policy on restriction of allocation of foreign exchange for milk importation in the overall interest of the country.
Friday Atufe,
Lagos.
and then