CBN Removes Forex Restrictions on Dairy Products

The Central Bank of Nigeria (CBN) has lifted the restrictions on the importation of milk and dairy products, according to a recent announcement by Zenith Bank.

Initially imposed on February 11, 2020, the restrictions on dairy imports were part of the CBN’s measures to manage foreign exchange (forex) reserves. However, in a notice to commercial banks dated March 12, 2024, the CBN provided an update on eligible items for forex, effectively removing the restriction on dairy products.

Zenith Bank conveyed the regulatory update to its customers, citing the circular reference TED/FEM/PUB/FPC/001/010. The statement highlighted that the ban on forex for dairy imports, except for selected companies, has been lifted. Entities that fulfill the necessary regulatory requirements are now permitted to access forex through the Nigeria Foreign Exchange Market (NAFEM) for dairy-related transactions.

This decision follows the CBN’s previous actions to ease forex restrictions. On October 12, 2023, the apex bank announced the lifting of the ban on 43 previously restricted items, allowing importers to purchase foreign exchange in the Nigerian Foreign Exchange Market. The CBN reiterated its commitment to addressing the forex backlog and engaging stakeholders to find solutions.

Among the items affected by the previous restrictions were rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry, tomatoes/tomato paste, soap, cosmetics, and head pans.

The removal of forex restrictions on dairy products signals a shift in the CBN’s policy approach, aiming to promote trade and alleviate supply chain constraints in Nigeria’s dairy sector.