Governor of Central Bank of Nigeria, Godwin Emefiele
The apex monetary authority of Nigeria stated the reason the three companies were the only ones allowed to import sugar into the country is because of their notable contribution to the backward integration programme introduced by the Federal Government.
It added that henceforth, no company outside the aforementioned three should import sugar into the country.
This was disclosed 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 forgoing, 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 $600m to $1bn on sugar importation annually.
The major regulatory objectives of the bank as stated in the CBN Act are to: maintain the external reserves of the country, promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government.
In May 2021, Nigerian National Petroleum Corporation (NNPC) revealed plans to acquire a 20% equity stake in Africa’s biggest oil refining facility, Dangote Refinery, Lagos.