Connect with us

Business

CBN clears Dangote, BUA on sugar importation to Nigeria

Published

on

The Central Bank of Nigeria has listed Bua Sugar Refining Limited, Dangote Sugar Refining Plc; and Golden Sugar Company, as the only companies allowed to import sugar into the country with officially sourced foreign exchange.

In a circular issued on Friday by its Director of Trade and Exchange, Dr. Ozoemena Nnaji, CBN noted that no other company would have access to foreign exchange market for sugar importation except the three companies.

According to the apex bank, the companies were exempted from foreign exchange restriction because they have made sufficient progress and commitment to the backward integration programme in the nation’s sugar industry.

The statement read: “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.

READ ALSO: Sugar production to fetch Nigeria $56m annually

“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 prior express approval of the CBN as the bank is charged with the task of monitoring the implementation of the backward integration programme of all companies.

“Please ensure strict compliance.”

The CBN had in April announced move to add sugar on its Forex restriction lists.

Ripples Nigeria in its weekly data-driven report titled: Ripplesmetrics had also done a follow-up report after the announcement.

The report revealed that only 2.7 percent of Nigeria’s sugar consumption is produced locally.

The data which was sourced from Nigeria Sugar Development Council (NSDC) showed that in 2019 1.41 million tonnes of sugar were consumed in Nigeria, but 38,597 were produced locally.

Another 1.53 million tonnes of sugar were imported in 2020.

However, no figure was available on local production of the item during the period.

Join the conversation

Opinions

Investigations