OPS Condemns CBN Ban Lift On Dairy Products.

Organized private sector has kicked against the lifting of the foreign exchange restrictions the Central Bank of Nigeria placed on the importation of milk and dairy products, warning that it could result in the decline of local production within the country.

Members of the Organized Private Sector gave the warning when the National President, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Oye, expressed concerns regarding the potential ramifications of the suspension of the restriction, especially against the backdrop of the naira’s current depreciation and the inconsistencies observed in Customs duty payment.

He said, the depreciation of the naira has already placed a significant burden on importers, with the increased cost of foreign exchange reflecting on the final prices of goods and services, adding that, in the recent policy shift, while potential and increasing competition broadening market access, stating that, it could also exacerbate this burden, leading to higher retail prices for milk and dairy products, ultimately affecting the end consumers.

He also said, the approach should be coupled with a robust support system for local dairy farmers to boost domestic production, thereby reducing over-reliance on imports in the long term, and should additionally, harmonize customs duty payments to eliminate disparities and foster transparency that will be critical to ensuring the success of this policy.

Oye noted that, the ban lift would restrict local production as the local producers would be unable to compete with the foreign producers because of the instability in the current fiscal regime, and called for a more sustainable approach.