NECA urges CBN to suspend Forex restriction on milk

The Nigeria Employers’ Consultative Association (NECA) has urged the Central Bank of Nigeria (CBN) to review and suspend the planned restriction of foreign exchange (Forex) for milk importation into the country.

According to NECA, going ahead with the restriction now will be catastrophic for the nation’s economy.

The Director-General of the association, Mr. Timothy Olawale, made this call in Lagos recently while speaking at a business forum on the need to measure the suitability of the policy.

The NECA director-general said the CBN should further engage stakeholders in extensive consultation on the issue before implementation, as it would enable the apex bank to gauge the merits and demerits of the policy in the long term.

READ ALSO:  Arafat: Saudi modernises stoning of devil to check stampede

“While employers understood and acknowledged the imperative for backward integration in the long term, the proposed foreign exchange restriction is too sudden and has the potential of crippling businesses which are already struggling. Without prejudice to the long-term benefits of backward integration, the short-term consequences, without a deliberate and acceptable plan by critical stakeholders can be catastrophic for local businesses in the value chain,” he stated.

Recall that in a recent circular released by the apex bank, the CBN Governor, Godwin Emefiele, reiterated the bank’s plan to restrict FOREX for the importation of milk and other dairy products.

Emefiele said Nigeria spends between $1.2 billion to $1.5 billion annually on importation of milk and other dairy products.

The CBN governor noted that although there were some successful attempts at producing milk locally, the vast majority of the importers still treat this national aspiration with imperial contempt.

Subsequently, reactions have trailed the announcement from various stakeholders concerned, thus, labeling the policy as political and sudden.