The Central Bank on Nigeria, CBN, has given reasons for the restriction of sugar importation into Nigeria Dangote Sugar Refinery Plc, BUA Sugar Refinery Ltd and Golden Sugar Company.
The apex bank’s restriction was disclosed in a circular with reference number TED/FEM/PUB/FPC/01/006, issued by the bank’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji on Friday.
According to CBN, the restriction is because of the companies’ notable contribution to the backward integration programme introduced by the federal government.
“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,” the circular reads.
Nigeria currently spends between $600 million to $1 billion on sugar importation annually.
