News in Brief:
– The Central Bank of Nigeria lifted foreign exchange restrictions on milk and dairy products, aiming to lower prices for consumers.
– This policy change allows importers to buy foreign currency at the official market rate, potentially increasing competition and driving down costs.
In a move expected to lower prices for consumers, the Central Bank of Nigeria (CBN) lifted foreign exchange (FX) restrictions on milk and dairy product imports. A circular dated 12 March 2024 confirmed this change, allowing importers to access FX at the official market rate.
This decision reverses a policy implemented in February 2020, which restricted access to FX for these products. The initial move was aimed at encouraging domestic milk production as well as conserve foreign reserves.
Ultimately the new directive by the CBN is expected to shore up competition and drive down prices for Nigerian consumers. It follows a similar move in October 2023, where the CBN lifted FX restrictions on 43 other items.
Interestingly, a number of dairy companies are expected to be direct beneficiaries of the move by the CBN. These companies include, Nestle, FrieslandCampina WAPCO Nigeria, and Chi Limited. Others are; TG Arla Dairy Product Limited, Promasidor Nigeria, Nestle Nigeria, as well as Integrated Dairies Limited.
