Central Bank stops forex allocation to milk, as imports reach $1.5 billion

The governor, Central Bank of Nigeria (CBN), Mr.  Godwin Emefiele has reiterated the impending stoppage of foreign exchange allocation for importation of milk and other associated products saying Nigeria cannot continue spending between $1.5-2 billion on importation when backward integration would have curbed the incidences of herdsmen and farmers’ clashes.   

Emefiele, while addressing the press as featured on Africa International Television’s Moneyline said the apex bank would no longer give foreign exchange for any importer to import milk products after three and half years notice given to major companies like West African Milk Company (WAMCO), Friesland Campino and others.

He stressed the need to use backward integration by using artificial insemination for animal production, water provision and grasses for cattle in a confined environment to curb roaming about and constant clashes in the process between farmers and herdsmen adding that loans would be made available to support the development at all the value chains.  

The Permanent Secretary, Federal Ministry of Agriculture and Rural Development (FMARD) Dr. Mohammed Bello Umar also has raised alarm over the huge amount being expended on imported milk products worth $1.3 billion in one year.

This was revealed in a statement issued after a two-day congress on the 4^th Global Dairy Congress tagged “Accelerating Investment and Cooperation of Dairy in Africa”.

The statement reported the Permanent Secretary as saying that the theme of this year’s congress “Accelerating Investment and Cooperation of Dairy in Africa” aligned with the aspiration and agenda of the government of Nigeria to fill up the dairy sub-sector to a level where it will be a major global player in the supply of wholesome dairy products for increase in employment generation, foreign exchange reliable means of livelihood for Nigerians.

Dr.Mohammed, , who was represented by the Director, Department of Animal Husbandry Services, Mr. Bright Wategire said that the congress was an opportunity for the government and stakeholders to interact and explore business opportunities, discuss critical issues targeted at resolving the multi-faced problems be-devilling dairy sector and also improve on it for the progress of agricultural sector, adding that challenges facing Nigeria dairy sector borders mostly on infrastructure development, processing, dairy husbandry, quantity control, product development and industry.

He disclosed that Nigeria’s cattle contribute a conservation estimate of 50,000 litres of milk daily both supply and consumption which is less than 20% of local potential, adding that Nigeria’s milk production accounts for only 13% of west Africa production and 0.01% of global dairy output.

He stated that Nigeria’s daily requirement is largely met by 60% imports and 40% local production, which all stakeholders must collaborate to uplift Nigeria dairy sector in order to fight against malnutrition and achieve zero hunger in Nigeria.

The Permanent Secretary said that Nigeria was in the process of evolving a national dairy policy that will articulate a clear road map for our developmental aspirations and strategies involving broad spectrum stakeholders and multinationals in order to improve the dairy sector.

Earlier, the Director of the Department of Animal Husbandry Services, Mr. Bright Wategire, who was in turn represented by the Deputy Director in the Department, Mrs. Winnie Ifeoma Lai- Solarin had said the dairy industry is a dynamic industry with an ever increasing demand for milk products in Nigeria was dominated by pastoralists who were gradually moving away from subsistence level of production to embracing entrepreneurial model with emphasis on economic consideration.

He further stated that Nigerian livestock accounts for one third of the country’s agricultural GDP, providing food, employment, farm, energy, manure and transport.

While delivering his goodwill message the Vice President of Arla Global Dairy Products Mr. SteenHadsbjerg stressed the need for all stakeholders to work together in order to achieve the United Nation’s global nutrition target of zero hunger and malnutrition by the year 2030 with sustainable development plan.