In a significant policy shift, the Central Bank of Nigeria (CBN) has lifted the restriction on accessing foreign exchange for the importation of milk and other dairy products into the country. This move marks a reversal of the ban imposed on February 11, 2020, when milk and dairy products were added to the list of items ineligible for forex access.
Zenith Bank, one of Nigeria’s leading financial institutions, promptly notified its customers of this development. According to reports, Zenith Bank relayed the CBN’s update on eligible items for foreign exchange in a circular dated March 12, 2024. The circular revealed that the restriction on forex for importing dairy products has been lifted for all entities, except selected companies.
The notification from Zenith Bank stated, “In light of the preceding, please note that the restriction on foreign exchange for importing dairy products and its derivatives to all entities except selected companies has been lifted.” It further emphasized that any eligible entry meeting the requirements can serve as a source for foreign exchange transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This decision comes in the wake of the CBN’s earlier announcement on October 12, 2023, regarding the lifting of the ban on 43 items previously restricted from accessing forex. In its statement, the CBN emphasized that importers of all the previously restricted items are now permitted to purchase foreign exchange in the Nigerian Foreign Exchange Market. Notable among the affected items were rice, cement, margarine, palm kernel, palm oil products, and vegetable oil.
The CBN’s actions aim to accelerate efforts to clear the foreign exchange backlog while fostering dialogue with stakeholders to address pertinent issues. Additionally, the CBN recently clarified allegations surrounding a purported N100 billion fertilizer donation, stating that the donated fertilizers were part of an existing program initiated by the Buhari Administration, emphasizing the importance of boosting food security in Nigeria.
As Nigeria navigates its economic landscape, the lifting of forex restrictions on key food items signifies a significant step towards enhancing accessibility and ensuring a steady supply of essential commodities. This policy shift aligns with broader efforts to promote economic growth and stability in the country.
The CBN’s decision to lift the forex ban on milk and dairy products underscores its commitment to adopting pragmatic measures that support sustainable development and address the evolving needs of the Nigerian populace.
