CBN Cancels All Unutilized Forms ‘M’ For Milk And Dairy Products Importation, To Boost Backward Integration

The Oasis Reporters

February 19, 2020

All authorized dealers and the general public have informed to take note that as part of efforts to increase local production of milk, it’s derivatives and dairy products, the Central Bank of Nigeria (CBN) has engaged with some companies in the industry who have keyed into its backward integration program to enhance their capacity and improve local milk production.

Subsequently, the CBN through it’s circular dated February 11, 2020 has approved that the processing of Form ‘M’, in respect of the importation of milk and it’s derivatives, shall only be allowed for the following companies :

FrieslandCampina WAMCO Nigeria

Chi Limited

TG Arla Dairy Products Limited

Promasidor Nigeria Limited

Nestle Nigeria PLC (msk only)

Integrated Dairies Limited

For the avoidance of doubt, all established Forms ‘M’ for the importation of milk and it’s derivatives for the companies other than the above for which shipment has not taken place should be cancelled immediately.

Dr. O. S. Nnaji, Director, Trade and Exchange Department in the Central Bank of Nigeria (CBN) has directed that strict compliance should be
ensured.

Backward integration seems the most sensible option out, since it has been said that the herds of cattle in Nigeria number between 20 to 30 million. That figure in itself was given by a chieftain of Miyetti Allah Kyautal Hore, Senator Alkali Jajere, who spoke on behalf of the group in a news report dated May 5, 2016 by THEWILL, an online Nigerian news site, captioned :

“Where Do You Expect Us To Keep Over 20 Million Cows – Cattle Breeders Ask Nigerians”.

Let entrepreneurs process milk and it’s derivatives out of this. That would assist Nigeria save a huge amount of foreign exchange that can be deployed to other areas of urgent need.

Greg Abolo

Blogger at The Oasis Reporters.

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