The Nigeria Employers’ Consultative Association (NECA) has advised the Central Bank of Nigeria (CBN) to suspend the planned foreign exchange restriction for milk importation.
DAILY POST had reported that the CBN planned to place a ban on the importation of milk and other diary products into the country.
Speaking at a Business Forum held in Lagos on Thursday, the Director-General of NECA, Mr Timothy Olawale, said there is the need to gauge the suitability or otherwise, of the policy at this time.
He stated that the apex bank should first engage in extensive consultation with all stakeholders, adding that the CBN should create an environment for further engagement of stakeholders that would enable the apex bank weigh the merits and demerits of the policy in the long term.
“While employers understood and acknowledged the imperative for backward integration on the long term, the proposed foreign exchange restriction is too sudden and has the potential of crippling businesses which are already struggling.
“Without prejudice to the long term benefits of backward integration, the short-term consequences, without a deliberate and acceptable plan by critical stakeholders can be catastrophic for local businesses in the value-chain,” Olawale said.
On the need for a long-term backward integration plan, the director-general said that cow husbandry in Nigeria had been proven not to be ideal for milk production but for consumption only.
“Contrary to the postulation that local cows are good enough for milk production, massive investment will have to be made for the importation of dairy cows for milk production,’’ he said.
Olawale maintained that due to the gap that would be created between local supply and demand, unpatriotic citizens would be importing milk, while government losses revenue with massive job losses and attendant social consequences.
He listed other consequences to include capacity under-utilisation as the entire food and beverage sector would be adversely affected because many were dependent in varying degrees on the use of milk as an intermediate product.
Olawale harped on the need for the apex bank to revisit the timeline of the implementation of the policy to enable companies plan for alternatives.
He advised the apex bank to, in the interim, suspend the planned restriction and engage in extensive consultation with all stakeholders.
“Government should support key players in the sector to enable them invest massively in backward integration,” he said.
The NECA boss said that in going forward, continuous and expanded consultation and engagement with stakeholders should be common feature of the CBN policy thrust, NAN reports.
