CBN restricts sugar importation to Dangote, BUA, Golden
The Central Bank of Nigeria (CBN) has announced that Dangote Sugar Refinery Plc, BUA Sugar Refinery Ltd, and Golden Sugar Company are the only authorised importers of sugar into the country.
Explaining its reason for restricting the importing of sugar into the country to these three countries, the CBN stated that the three companies were the only ones who have fully bought into the backward integration programme introduced by the Federal Government.
The apex bank further warned that no other company apart from the three would be allowed to import sugar into the country.
The CBN disclosed this in a circular issued on Friday by the bank’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji, with reference number TED/FEM/PUB/FPC/01/006.
It read, “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.
“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.”
Recall that in April, the CBN Governor, Godwin Emefiele, stated that the bank planned to include sugar and wheat on the list of import items banned from accessing foreign exchange.
He had said, “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.”
Nigeria currently spends between $600million to $1billion on sugar importation annually.
