CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices - Business

CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices - Business - Nairaland

Nairaland Forum › Nairaland General › Business › CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices (25211 Views)

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CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by ijustdey(op): 2:13pm On Mar 20, 2024

The Central Bank of Nigeria, CBN, has lifted forex restrictions on the importation of milk and dairy products in the country, a move expected to push down prices.

This was contained in a CBN circular with the reference number TED/FEM/PUB/FPC/001/010 dated March 12 to all banks.

Zenith Bank further confirmed the development in a recent notice to customers.

“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.”

This means importers can now access foreign exchange at official market rates.

Recall that on February 11, 2020, the CBN had added milk and dairy products to the list of items not eligible for forex.

Meanwhile, on October 12, 2023, the apex bank announced lifting the ban on 43 items previously restricted from accessing forex.

On Tuesday, the Naira appreciated to N1,560.57 per USD from N1,572.82 on Monday at the official forex market. This reduced the import duty exchange rate to N1,572.507 per USD on Tuesday from N1,593.41.

https://dailypost.ng/2024/03/20/cbn-lifts-fx-restrictions-on-milk-dairy-products-import-to-crash-prices/

24 Likes 2 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Zwooks: 2:15pm On Mar 20, 2024

Hypocrites. Do the same to cement

141 Likes 13 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Nbote(m): 2:18pm On Mar 20, 2024

Simple... We have been calling for this for months now. The uselessness of so many policies of the last govt cannot be over emphasised

109 Likes 11 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by REDshouse(m): 2:18pm On Mar 20, 2024

Peter obi (Next supermarket) importer of all diaries will be happy

40 Likes 6 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Nbote(m): 2:22pm On Mar 20, 2024*

REDshouse:
Peter obi (Next supermarket) importer of all diaries will be happy

Some of you reason like you only have mucus in your head instead of brain matter. Seriously there should be immunisation against foolishness at childbirth so that some of you don't grow into nuisances.

The price of milk and dairy products is one of the reasons why bakers are crying over cost of production

Prices of 25kg of milk is now over 150,000 because only a few companies were given forex at official rates to import them.

193 Likes 15 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Dreal1247: 2:25pm On Mar 20, 2024

It's only going to bear fruits when there are multiple persons importing the commodities into the country. Otherwise, greed won't allow the monopolistic importers to reduce the prices.

57 Likes 4 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by budaatum: 2:25pm On Mar 20, 2024

This means importers can now access foreign exchange at official market rates.

So, official market rate still exists apart from the general market rate?

“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.”

I'm very certain it can not possibly be subsidised for selected companies, as Nigeria is not wọwọ like that.

/s

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Nbote(m): 2:26pm On Mar 20, 2024*

Dreal1247:
It's only going to bear fruits when there are multiple persons importing the commodities into the country. Otherwise, greed won't allow the monopolistic importers to reduce the prices.

That's exactly what this means. Before now only a few companies had access to forex at govt rates to import. Now anyone importing milk and dairy products won't have to go and source forex from the black market

Taich:
Can someone explain to me how this will lead to the crash in price of diary products? Lifting ban by CBN means that diary importers can approach the bank for FX, banks will sale FX to importer at bank/black market rate. If importers have been importing since 2020 using parallel market when it would have been cheaper using banks why will price crash now the the bank and parallel rates are same? I will love to be schooled. Thanks in advance.

Before now only few companies got forex at the official rates and as such it discouraged other companies from getting involved because they wouldn't be able to compete in the market with the ones enjoying govt incentive. But now that the restrictions have been removed, just about anyone can get forex at the same rates to import. With many players in the market, prices will becomes competitive as the best price wins. The few companies importing are the ones enjoying the monopoly of the market

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by RenaissanceGuy: 2:28pm On Mar 20, 2024*

What about rice so that our greedy rice farmers can bite their fingers in regret??

BTW how comes most of the commenters are writing "diary" instead of dairy?? grin

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by budaatum: 2:32pm On Mar 20, 2024

RenaissanceGuy:
What about rice so that our greedy rice farmers can bite their fingers in regret.

While increasing unemployment because you'd rather buy imports?

4 Likes 3 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Didi2d(m): 2:33pm On Mar 20, 2024*

RenaissanceGuy:
What about rice so that our greedy rice farmers can bite their fingers in regret.

Seriously, I don't know why the government are still wasting time on opening the border
They should lift ban on rice, cos I don't understand why rice is still expensive.
For over eight years, buhari government in other to encourage local farmers closed the borders, instead this move to make rice surplus and cheap, farmers decided to do otherwise

45 Likes 6 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by bonechamberlain(m): 2:40pm On Mar 20, 2024*

What is this government doing about production. We import milk, diary products, fish, chicken etc when we large swath of ocean, cows roaming aimlessly, vast lands.

The greatest war Nigeria has been facing is economic war, both from external powers and internal saboteurs.

There are some countries hell bent on ensuring Nigeria remains import dependent and there are some Nigerians hell bent on ensuring they are the only ones who should produce and sell food and other commodities.

For the sake of humanity divide Nigeria.. Wole Soyinka.
angry

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by DIVINEEVIDENCE: 2:40pm On Mar 20, 2024

Watch as importers will still exploit this window go make abnormal profits to the detriment of everyone else.

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by tefishy(m): 2:41pm On Mar 20, 2024

This is what is expected to be done on other basic commodities like rice, cement, wheat

People are very hungry out there

25 Likes 2 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Kingpele(m): 2:41pm On Mar 20, 2024

Try and error policies

3 Likes 3 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by mohbadliveson: 2:41pm On Mar 20, 2024

I must really commend Cardoso. Pounds and Dollars have been falling massively

12 Likes 4 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Kingpele(m): 2:41pm On Mar 20, 2024

Try and error policies...this will further weaken the naira...more need for dollar will increase the value of dollar agains naira..this CBN governor na olodo

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by id4sho(m): 2:42pm On Mar 20, 2024

Why floating the naira. tongue

APC economic policies ain't straight forward

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by SensualMan: 2:42pm On Mar 20, 2024

With Ebi n pawa on the rise, when was the last time that section of the country had milk nor diary products?
The great Egyptian famine is coming, your screaming Ebi n pawa ooo will be a small thing.

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Greenfusion: 2:42pm On Mar 20, 2024

Nbote:
Some of you only have mucus in your head instead of brain matter. Seriously there should be immunisation against foolishness at childbirth so that some of you don't grow into nuisances.

The price of milk and dairy products is one of the reasons why bakers are crying over cost of production

Prices of 25kg of milk is now over 150,000 because only a few companies were given forex at official rates to import them.

Lololol ..well said

2 Likes

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by searchng4love: 2:42pm On Mar 20, 2024

Nbote:
Some of you only have mucus in your head instead of brain matter. Seriously there should be immunisation against foolishness at childbirth so that some of you don't grow into nuisances.

The price of milk and dairy products is one of the reasons why bakers are crying over cost of production

Prices of 25kg of milk is now over 150,000 because only a few companies were given forex at official rates to import them.

The matter pain you gaaan

15 Likes 4 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Greenfusion: 2:43pm On Mar 20, 2024

mohbadliveson:
I must really commend Cardoso. Pounds and Dollars have been falling massively

4 where please?

2 Likes

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Taich(m): 2:43pm On Mar 20, 2024

Can someone explain to me how this will lead to the crash in price of diary products? Lifting ban by CBN means that diary importers can approach the bank for FX, banks will sale FX to importer at bank/black market rate. If importers have been importing since 2020 using parallel market when it would have been cheaper using banks why will price crash now the the bank and parallel rates are same? I will love to be schooled. Thanks in advance.

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Lovenorth: 2:43pm On Mar 20, 2024

Trial and error government

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by tolue42(m): 2:44pm On Mar 20, 2024

The reason we shut our borders on this things doesn't work out a planned. Thanks to CBN for reviewing the policies again.

6 Likes 2 Shares

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by sofeo(m): 2:45pm On Mar 20, 2024

Alright

Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by tolue42(m): 2:46pm On Mar 20, 2024

Lovenorth:
Trial and error government

You are the one not following. They shut the borders believing local productions will pick up and at a reduced price. But it's obvious our people are even selling at same price importers put on their goods despite sourcing for dollars through black market. So why continue suffering the citizens?

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Omalicious1: 2:47pm On Mar 20, 2024

ijustdey:
https://dailypost.ng/2024/03/20/cbn-lifts-fx-restrictions-on-milk-dairy-products-import-to-crash-prices/

The middlemen wouldn't reduce the price...

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Re: CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices by Greenfusion: 2:47pm On Mar 20, 2024

Nbote:
Some of you only have mucus in your head instead of brain matter. Seriously there should be immunisation against foolishness at childbirth so that some of you don't grow into nuisances.

The price of milk and dairy products is one of the reasons why bakers are crying over cost of production

Prices of 25kg of milk is now over 150,000 because only a few companies were given forex at official rates to import them.

You are a legend .. 😂 lol

5 Likes