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The Central Bank of Nigeria (CBN) has announced with “immediate effect” that only six companies can continue to import milk in the country.

According to a CBN circular issued today and signed by the Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, milk importation into the country has been restricted to FrieslandCampina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria PLC (MSK only), and Integrated Dairies Limited.

The CBN said the restriction was in line with its objective to increase and improve the local production of milk, its derivatives and other dairy products in the country.

According to the circular, all Forms ‘M’ for the importation of milk and its derivatives by authorized dealers will only be allowed for the aforementioned companies. CBN, therefore, advised importers not on the list of companies cited in the circular to cancel all established Forms ‘M’ for the importation of milk and its derivatives for which shipment has not taken place.

Providing clarification on the circular, Director, Corporate Communications Department at the CBN, Isaac Okorafor, explained that the apex bank “engaged the six companies because they showed sufficient willingness and ability and had keyed into the CBN’s backward integration programme in order to enhance their capacity and improve local milk production.”

Okorafor said that the objective of the CBN was to increase milk production in the country from the current figure of 500,000 metric tonnes to about 550,000 metric tonnes within the next 12 months. In addition to facilitating easier access to funding for dairy investors, he said it was the desire of the CBN to ensure that the country conserves foreign exchange, trigger economic growth and boost employment opportunities in the sector.

The CBN estimates that it could help conserve between $1.2 billion and $1.5 billion the country spends on the importation of milk annually.

However, when the idea of a likely ban on milk importation was mooted last year, the Director-General of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said the decision could lead to the downsizing of labour in the dairy sector, while other stakeholders said they were not consulted by the CBN.

The CBN denied it planned to “ban” importation of milk and other dairy products. But with its intent to conserve foreign exchange, it was expected that the apex bank may restrict access to foreign exchange for the importation of the products, like it has done for about 42 items on its foreign exchange restriction list.