NECA hails CBN for exempting six companies from Forex restriction

The Nigeria Employers’ Consultative Association (NECA) has commended the Central Bank of Nigeria (CBN) for exempting six companies from the restriction on milk and dairy products importation.

The NECA’S Director-General, Mr Timothy Olawale said in a statement on Thursday in Lagos that it was timely and a sign of responsiveness to good reasoning and businesses concerns.

The News Agency of Nigeria (NAN) reports that the CBN had on Feb. 11 announced the exemption of six companies from the restriction on milk and dairy products importation.

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The apex bank said that the exempted companies had started investments in local milk production as part of its backward integration plan.

The companies exempted include; Friesland Campina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria Plc (MSK only) and Integrated Dairies Limited.

Olawale said; “we commend CBN for the bold step of reversing a policy that almost crippled the dairy and milk industry.

“The exemption of the six companies demonstrated that the government is indeed responsive to the concerns we had expressed severally.

“While we support the efforts of CBN, its derivatives and dairy products, we believe that businesses should be given ample time to plan and implement the backward integration programme’’.

He commended the exempted companies for their resilience, doggedness, commitment to local milk production and bold steps at backward integration.

The Director-General, however, urged the government to ensure policy consistency and also encourage investment in animal husbandry.

According to him, it will enable the organisations and many other players in the industry to focus on their core business of dairy and milk production.

He said that the experience in other climes showed that animal husbandry was a thriving industry that generated large employment for citizens and revenue for the government.

“Government should institutionalise dialogue and focus engagement with organised businesses before taking fundamental policy decisions that can affect businesses.

“A collaborative approach to policy formulation and implementation will do well for the development of the nation,” Olawale said.

NECA is the umbrella organisation of employers in the organised private sector of Nigeria.


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