Dairy Importers Rejoice as CBN Lifts Forex Restrictions

The Central Bank of Nigeria (CBN) has announced the lifting of forex restrictions on the importation of milk and dairy products.

The decision, outlined in a recent CBN circular, represents a pivotal shift from previous policies, aiming to stimulate market activity and alleviate price pressures on consumers.

The circular, referenced as TED/FEM/PUB/FPC/001/010 and dated March 12, 2024, sent ripples of excitement through the dairy importation sector.

Confirming the development, Zenith Bank, in a notice to its customers, highlighted the removal of restrictions on accessing foreign exchange for importing dairy products, a move expected to ease the burden on importers.

This decision overturns the CBN’s stance dating back to February 11, 2020, when milk and dairy products were added to the list of items ineligible for forex.

Now, with the ban lifted, importers can access foreign exchange at official market rates, promising a more competitive landscape for dairy trade.

The impact of this policy shift extends beyond importers, with potential benefits for consumers as well. By increasing the availability of imported dairy products, prices are anticipated to decrease, offering relief to consumers grappling with inflationary pressures.

This move aligns with broader economic strategies aimed at fostering growth and diversification within Nigeria’s agricultural sector.

By facilitating access to forex for dairy imports, the CBN aims to bolster supply chains, enhance market efficiency, and ultimately contribute to the country’s economic resilience.

As the Naira strengthens and import duty exchange rates adjust, stakeholders across the dairy value chain eagerly anticipate the opportunities this policy change will unlock, heralding a new era for Nigeria’s dairy industry.