The Central Bank of Nigeria (CBN) has announced the restriction of the importation of sugar into the country to only 3 companies.
The apex bank said only BUA Sugar Refinery Limited, Dangote Sugar Refinery Plc and Golden Sugar Company can be allowed to import sugar into the country through any of the official foreign exchange sources.
The decision by the CBN is because of the reasonable progress made by the 3 firms in achieving backward integration, a programme introduced by the Federal Government, in the sector.
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This disclosure is contained in a circular with reference number TED/FEM/PUB/FPC/01/006, issued on Friday, July 16, 2021, and signed by CBN’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji.
The CBN in the circular to all authorized dealers said that henceforth, no company outside the aforementioned 3 firms should be allowed to open Form M or allowed to access foreign exchange from the foreign exchange market to import sugar into the country without its prior or express approval.
What the CBN Circular is saying
The circular from the CBN reads, “The Federal Government of Nigeria, under the National Sugar Development Council, established the Nigerian Sugar Master Plan to encourage and incentivise sugar refining companies in their Backward Integration Programme for local sugar production.
“Accordingly, the underlisted three companies, who have made reasonable progress in achieving backward integration in the sector, shall only be allowed to import sugar into the country: BUA Sugar Refinery Limited, Dangote Sugar Refinery Pic and Golden Sugar Company.
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“In view of the foregoing, authorised dealers shall not open Forms M or access foreign exchange in the Nigerian foreign exchange market for any company including the three listed above for the importation of 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 backward integration programmes of all the companies.”
What you should know
It can be recalled in April 2021, the CBN Governor, Godwin Emefiele, announced plans to include sugar and wheat in the foreign exchange restriction list as part of measures to conserve foreign exchange and boost local production of these items.
Also, in April 2021, the Federal Government through a letter issued by the Nigerian Ports Authority (NPA), banned the importation of refined sugar and its derivatives from the country’s Free Trade Zones (FTZs).
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The action of the Federal Government is part of its efforts to protect the sugar industry which is governed by the Nigerian Sugar Master Plan (NSMP).
Nigeria is reported to currently spend between $600 million to $1 billion on sugar importation every year.
This is evil and it has increased the suffering of the masses in Nigeria . It’s Monopoly of market and it’s the same with cement . It’s using hunger as a weapon to kill the masses. Think about it.
CBN una follow they kill this country…. How can u monopolize sugar importation for just 3 companies…. They will just have a meeting and inflect the price to suit their companies
Why, so if I have my money, I can not apply for licence to import sugar? Is that what CBN is saying? Haba is Nigeria not for all? Emefele be careful o. Asked soludo what is facing now, I will advise you to make a policy that will favours Nigerian must expectally young Nigerian… because once you leave office, your name will be remembered by us… that’s my take.
You people are one’s killing this country .
What stops Nigeria from my refining our own sugar in here those days we sugar factory here in the Nigeria, what happened. Dangote bought factory short them up but prefer importation cause it’s cheaper. We don’t have a mechanized farmers that can boost a high yielding product which are cheaper .Dangote is one of Nigerias problems he wants to solimonize the country to himself and this elite
What the CBN governor is doing is just the best. Because the elites doesn’t want invest into local production except the Dangote and the like, hence the benefit they enjoy today therefore I request you should continue giving the preference.