The Central Bank of Nigeria (CBN) has lifted forex restrictions on the importation of milk and dairy products in the country, a move anticipated to drive down prices. This decision was communicated in a CBN circular dated March 12, with the reference number TED/FEM/PUB/FPC/001/010, addressed to all banks. Zenith Bank also corroborated this development in a recent notice to its customers.
Importers can now access foreign exchange at official market rates for the importation of milk and dairy products, reversing the previous restriction imposed by the CBN on February 11, 2020. Additionally, on October 12, 2023, the apex bank announced the lifting of the ban on 43 items previously restricted from accessing forex.
As a result of these policy adjustments, the Naira appreciated to N1,560.57 per USD from N1,572.82 on Monday at the official forex market. This led to a reduction in the import duty exchange rate to N1,572.507 per USD on Tuesday from N1,593.41. These developments signal a shift in the forex market dynamics and are expected to have a positive impact on the availability and affordability of milk and dairy products in Nigeria.
“Please be informed that the Central Bank of Nigeria (CBN), through its circular Ref No: TED/FEM/PUB/FPC/001/010, dated March 12, 2024, has provided an update on eligible items for foreign exchange (Non-Valid for FX),” the statement reads.
“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.” the statement reads.
