Three months after the Central Bank of Nigeria announced its plan to add sugar to its Foreign Exchange restriction list, the apex bank has now restricted importation of the commodity to three companies.
CBN restricts importation of sugar to Dangote, BUA and Flour Mills
The CBN says sugar importation is restricted to the three companies because of the progress they've made in their Backward Integration programs.
Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited, and Golden Sugar Company, owned by Flour Mills of Nigeria Plc are the only three companies that are allowed to import sugar into the country.
The CBN said sugar importation is restricted to the three companies because they have made ‘reasonable progress’ in their Backward Integration programs.
The apex bank announced this in a statement by Ozoemena Nnaji, its director of trade and exchange department on Friday, July 16, 2021.
The statement 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 (BIP) 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 Plc, 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.”
The Backward Integration Policy (BIP) in the sugar sector was introduced by the Federal Government to end sugar importation in the country.
When the CBN hinted at its plan to add sugar to its foreign exchange restriction list in April, it said the initiative was aimed at encouraging local production of the commodity.
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