The Central Bank of Nigeria (CBN) has announced the removal of foreign exchange restrictions on the importation of milk and dairy products, a significant shift from its previous stance.
Previously, on February 11, 2020, the CBN had classified milk and dairy products as ineligible for foreign exchange. However, a recent update communicated to commercial banks on March 12, 2024, by Zenith Bank, indicates a change in policy.
The bank’s notice, referencing CBN’s circular Ref No. TED/FEM/PUB/FPC/001/010, stated that the limitations on foreign exchange for the importation of dairy products have been lifted for all entities, provided they comply with the prevailing regulatory requirements.
Entities that meet these requirements are now permitted to procure foreign exchange from the Nigeria Foreign Exchange Market (NAFEM) for their transactions.
This development follows the CBN’s October 12, 2023, announcement, which saw the lifting of forex restrictions on 43 items that had been previously banned under the 2015 Circular TED/FEM/FPC/GEN/01/010 and its subsequent amendments.
The CBN reaffirms its commitment to resolving the foreign exchange backlog and maintaining an ongoing dialogue with stakeholders to address related issues.
The list of items affected by the previous restrictions includes a variety of goods such as rice, cement, margarine, palm products, vegetable oils, meats, vegetables, poultry, tomato products, soap, cosmetics, and head pans, among others.
