The Central bank of Nigeria (CBN) has restricted the importation of sugar into the country to only three companies, namely; BUA Sugar Refinery Ltd, Dangote Sugar Refinery Plc, and Golden Sugar Company.
The CBN said the three companies have made “reasonable progress in achieving backward integration in the sector.”
The Apex bank disclosed this in a circular with reference number TED/FEM/PUB/FPC/01/006 on Friday titled, ‘Sugar Importation in Nigeria’ and signed by CBN’s Director, Trade and Exchange Department, Dr. Ozoemena Nnaji.
Authorised Dealers are prohibited by the CBN from opening Form M or access foreign exchange in the Nigerian foreign exchange market for any company including BUA Sugar Refinery Ltd, Dangote Sugar Refinery Plc, and Golden Sugar Company without prior and express approval from the CBN.
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.
The CBN said it was given the mandate to monitor the implementation of the backward integration programs of all companies.
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The CBN circular 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
- Golden Sugar Company
“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 programs of all the companies.”
Nigeria currently spends between $600m to $1bn on sugar importation annually. However, the CBN Governor Godwin Emifiele back in April said that the bank is considering the inclusion of sugar and wheat on the list of import items it banned from accessing foreign exchange.
“We are looking at sugar and wheat. We started a programme on milk about two years ago. Eventually, these products will go into our FX restriction list,” he said.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
