CBN Makes Foreign Exchange Accessible for Milk and Dairy Imports

The Central Bank of Nigeria (CBN) has declared that the import limitations on milk and dairy products will no longer be in place, going against a decision made in February 2020.

The CBN gave an update on goods eligible for foreign exchange in a notice sent to commercial banks on March 12. This announcement indicated a major change in the CBN’s policy regarding imports of milk and dairy products.

Zenith Bank verified the development and said as much in a statement to its clients., “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 resumed, “In light of the foregoing, please note that the restriction on foreign exchange for the importation of dairy products and its derivatives to all entities except selected companies has been lifted.”

According to Zenith Bank, any entity that meets the “necessary extant regulation requirements is allowed to source for FX at the Nigeria Foreign Exchange Market (NAFEM) for the transactions”.

This action comes after the CBN decided on October 12, 2023, to remove the restriction on 43 previously prohibited items’ ability to access foreign exchange.

“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market,” the apex bank disclosed.

“The CBN is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.”

Rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and meat products, vegetables and processed vegetable products, chicken, tomatoes and tomato paste, soap, cosmetics, and head pans were among the products that were impacted by the previous ban.