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Saturday, July 27, 2019

Central Bank To Ban Import Of Milk, Nigeria To Produce Milk

The Central Bank of Nigeria (CBN) has said it will soon implement forex restriction on milk importation, noting that the country can be self-sufficient in milk production.
CBN Governor Godwin Emefiele stated this, yesterday, while briefing journalists at the end of the July 2019 edition of the Monetary Policy Committee (MPC) meeting held in Abuja.
At the meeting, the CBN held all key parameters constant with the benchmark lending rate still at 13.5 percent.
Mr. Emefiele said the backward integration from the milk importers in Nigeria has become inevitable and might not only impact local production of milk but also be a panacea to the
recurring herders/farmers conflicts.
This is even as the CBN has promised that anyone willing to ranch cattle in Nigeria and produce milk will be provided credit to acquire land and build relevant infrastructure.
“We believe that milk is one of those products that can be produced in Nigeria today. We have seen the importation of milk in Nigeria for over 60 years,” he said, adding that FrieslandCampina and West African Milk, the foremost milk importers have done so for over 60 years.
“Today the import bill for milk annually stands at between $1.2bn and $1.5bn…Given that it is a product that we can produce in the country, we can’t continue to import milk,” the apex bank governor emphasised.
“Let’s ask ourselves the question, what does it take to produce milk? Get a cow, give it lots of water and food, position the cow in a place without it roaming around, and milk it. The reason our cows can’t produce enough milk is that they roam around. They don’t have enough water to drink, and consume whatever they find. As they roam from one place to another, they destroy farms and farm produce and this leads to clashes,” he explained.
According to the CBN governor, “about three and half years ago when the restriction of forex policy started, we considered including milk in the list of items that should be banned from forex but we conjectured that based on the kind of sentiments, we needed to be careful.”
“At that time, we called in the management of WAMCO, the oldest milk importer in Nigeria; we held at least three meetings with them. We told them milk would have been restricted from forex but we stepped it down. We encouraged them to backward integrate and begin the process of developing milk in Nigeria,” he said, adding that that hasn’t happened after over three years.
Mr. Emefiele said local production of milk can be in two schemes. He explained that the milk importers can acquire their own land and begin to ranch their cows, and of course they can be complemented by the pastoralists who would have their smallholder cattle farming arrangements and they can get additional milk from them.
Secondly, he said the big milk companies in Nigeria could support the pastoralists, get them concentrated in one place rather roam around, provide them facilities, water, hospitals, schools, sell them grass etc and they can get milk from them to recoup their investments. Expert’s reaction on MPC interest rate decision
According to Lukman Otunuga, FXTM research analyst, “persistent inflationary pressures in Nigeria have prevented the Central Bank of Nigeria (CBN) from joining the global monetary easing bandwagon this month.”
The CBN kept its benchmark interest rates unchanged at 13.5% in July as the bank focused on price stability, even as economic growth remained important.
Otunuga said: “Although a rate cut is in the pipeline, this will be heavily influenced by inflation which has been above the target range of 6%-9% for more than four years. With the pace of economic growth still fragile and the nation exposed to external risks in the form of oil volatility, it becomes a matter of “when” rather than “if” the CBN will cut rates.
“Repeated signs of consumer prices cooling should provide the central bank with enough ammunition to pull the trigger on a rate cut in September.
“Given how lower interest rates will stimulate consumption, encourage businesses to boost investments and give banks more incentive to borrow, this could be one of the medicines Nigeria needs to restore lost strength.”
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Comments
  • Aina Prince Jp Our starting is good but lack of finishing.
  • Chisom Bright It will be a good development so far as anyone that wants to engage in it is able to ranch his cows and meet hygiene standards. The cow up there looks more healthy than what I see in Nigeria everyday😁
    1
    • Endy Edeson Hahahaha. That is why CBN is coming in, so that we can have healthy looking cows that can produce milk. The cows we have right now are only made for meat not mil
      1
  • Lawal Kolawole What happened and where dis New come from
    • Chisom Bright Lawal Kolawole MONETARY POLICY COMMITTEE. It is a meeting held by members of the CBN and other relevant financial bodies like ministry of finance on issues concerning the economy
      1
    • Lawal Kolawole Chisom Bright It's see dat one it's our problems of this country our government don't know what their doing please make them step aside
      1
  • Marcel Maikyur This people want to starve us for everything,
  • Olumuyiwa Adejinmi Good initiative to ban the importation of milk. The solution is in empowering anyone who's interested in this line of business( cattle rearing) not necessarily a particular tribe/section of the country.
    2
  • Phillip Mba Good move
  • Femi Martins Wrong move
    • Endy Edeson why is it a wrong move?
    • Femi Martins Endy Edeson we are not self sufficient in milk production yet. This move would skyrocket the price of milk times two. It has always been the case when bans are placed on any commodity. From where i stand, it's simply LAZY thinking to always ban commodities. Those at the bottom of the ladder would be the ones to bear the brunt.
      1
  • Austin Eze RUGA
  • Mac David Akwuking Haha haha haha 😂 😂 😂 😂 😂 I dey laugh this yeyecious fg.. Haha haha 😂 😂
    2
    • Endy Edeson Nwanne Mac, this one will promote Nigerian businesses especially the people who are into cow rearing. it will boost their income
    • Mac David Akwuking Endy Edeson OK oooo but this country is seriously unserious.
  • Liau Mafisa If the new law is to enforce RUGA or to make RUGA SETTLEMENT attractive and tempting to south Esat...you have failed. Only individual Ranching or corporate Ranches are welcome in IGBO LAND
    1
  • Ibitoye Abdul Quadri No matter the kind of good approach the government are trying to bring in order to promote locally made products, There will be some idiot who will still complain 
    Did I just see someone mentioning ruga there?? 
    As far as I am concerned this is the only administration that cares about our local farmers herders, engineers, and other professional in Nigeria irrespective of some lapses there is still more to come
    2
    • Endy Edeson Well said, thanks for your comment. The question now is, won't the ban on import of milk lead to RUGA success if Ruga is implemented? The CBN policy and RUGA initiative are on the same page.
    • Ibitoye Abdul Quadri Endy Edeson 
      The real difference is this
      Instead of government paying the money from the national treasury (as in the case of Ruga) think about it, as a milk producing company you won't expect government to finance your business for you
      See More
      1
  • Timilehin Atobatele dangote milk on the way!
    1
  • Ikwuamaka Nwazuru Since u bond rice, aw many tons av we bin able to produce. Y don't u allow the present milk industry we have to boom b4 u bond. Na na 2 increase the price in commodity na una won do xo
    1
  • Mariam Khalifah Adewole Ikwuamaka Nwazuru. I thought through that same line of yours.
    The Rice production in the country, how many has it been able to feed..the local rice are only sold in Local Government Offices. And is not sold cheap.
    Now they want to ban importation of milk. 
    See More
    1
    • Ikwuamaka Nwazuru Some times I doubt the qualifications or certificate MOST of our elite claim to process. Simple hypothesis wch I got while in pry 3, ALL these ACCLAIMED degree holders can't even explore. Shame on their Patiners, Children & Parents
      1
  • Chime-Fidel Azubuine To encourage monopoly aboki abi?........
    2
  • Umendiego IRapsogood Kenechi RUGA in uniform 🙍
    2
  • Boma Pepple-Uduebor Now where is the electricity for industrialized milk factories enough for the whole country.how do these people think self?
    2
  • Mashudi Samaxe Suchet My friend all na wash ... You ban it but without creating a standard factory for local consumers. even China itself import milk and produce milk for local consumers. it's left for consumers to decide which is preferable local or foreign... Nigeria can decide to enter into milk production market & compet or produce & export to other countries for consumption dumb asses..
    1
    • Arthur Kelechi That's how they banned tomato paste and rice and keep making projections that are impossible
      1
  • Kelechi Ologwu Just to give fulanis sense of belonging now that people have started avoiding their cow meat.
    1
  • Claudius Dominion Agbegbedia Acadon Of course!!! This is to pave way for #Dangotemilk. Government son. Mtchww
    1
  • Princess Akim Don't worry we don't need it. It promotes cancee
    1
  • Arthur Kelechi They are just playing monopoly with Nigeria's economy
    1

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