Importers of milk are no longer able to access credit to bring the dairy product into the country anymore, Reuters reports.
This is due to a circular issued by the Central Bank of Nigeria ordering commercial lenders to cease lending funds to persons, who bring the much needed food item into the country.
In the latest directive given to banks, the apex financial institution said milk imports will no longer be qualified under payment terms called “bills for collection”, which allows an importer to buy on credit.
Under the new regime, importers are now mandated to fund their naira accounts and open letters of credit, it was gathered.
CBN’s governor, Godwin Emefiele, had in July announced that the bank will stop providing foreign exchange to traders importing milk into the country.
That announcement was followed by a declaration of intent by Nigeria’s richest man, Aliko Dangote, to invest N288bn into dairy production in Nigeria.
Reuters reports that industry groups have been lobbying the government to stall its intending forex ban on the grounds that domestic milk production was insufficient for local demand.