The Central Bank of Nigeria (CBN) announced the restriction of the importation of sugar into the country to only 3 companies.
The umbrella bank said that only BUA Sugar Refinery Limited, Dangote Sugar Refinery Plc and Golden Sugar Company may be allowed to import sugar into the country through one of the official sources of foreign currency.
The CBN’s decision is due to reasonable progress made by the 3 companies in achieving upstream integration, a program introduced by the federal government, in the sector.
This disclosure is contained in a circular with reference number TED / FEM / PUB / FPC / 01/006, published on Friday, July 16, 2021 and signed by the Director of the Department of Commerce and Trade of CBN, Dr Ozoemena Nnaji.
The CBN in the circular to all authorized dealers said that henceforth, no business other than the aforementioned 3 companies should be allowed to open Form M or access foreign exchange market currencies to import sugar into the country without its. prior or express approval. .
What the CBN circular says
The CBN circular reads as follows: “The Federal Government of Nigeria, under the auspices of the National Sugar Development Council, has established the Nigerian Sugar Master Plan to encourage and incentivize sugar refining companies in their upstream integration program for local sugar production. .
“As a result, the three underlisted companies, which have made reasonable progress in achieving upstream integration in the sector, will not be allowed to import sugar into the country: BUA Sugar Refinery Limited, Dangote Sugar Refinery Pic and Golden Sugar Company.
“In view of the above, authorized dealers should not open M forms or access currency in the Nigerian foreign exchange market for any business, including the three listed above for importing sugar without the Prior and express approval of the Central Bank of Nigeria as the bank is charged with the mandate of monitoring the implementation of the upstream integration programs of all companies.
What you should know
Recall that in April 2021, CBN Governor Godwin Emefiele announced his intention to include sugar and wheat in the list of exchange restrictions as part of measures to conserve currencies and boost production local of these articles.
In addition, in April 2021, the federal government, through a letter issued by the Nigerian Ports Authority (NPA), banned the import of refined sugar and its derivatives from the country’s free zones (FTAs). .
The federal government’s action is part of its efforts to protect the sugar industry, which is governed by the Nigerian Sugar Master Plan (NSMP).
Nigeria is currently estimated to spend between $ 600 million and $ 1 billion importing sugar each year.