CBN injects $210m into Forex Market, approves six firms for dairy products importation

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The Central Bank of Nigeria (CBN) has injected $210 million into the inter-bank Foreign Exchange Market to boost liquidity in the sector.
The bank’s Director, Corporate Communications Department, Mr. Isaac Okorafor, made this known in a statement in Abuja on Tuesday.
Okorafor explained that authorised dealers in the wholesale segment of the market received $100 million, while the Small and Medium Enterprises segment received $55 million.
He said customers who were seeking foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance, among others, were allocated $55 million.
The director stated that the CBN’s commitment to sustaining liquidity and ensuring stability in the market remained paramount on the minds of the management of the bank.
According to him, the continued intervention by the bank underscored the resolve of the Governor, Godwin Emefiele, to guarantee access to all those who genuinely required foreign exchange from the forex market.
The bank on Friday, injected $218.41 million and CNY18 million into the Retail Secondary Market Intervention Sales segment.
The Naira, on Tuesday, remained stable, as N358 was exchanged for a dollar in the Bureau de Change  segment of the market.
Meanwhile, CBN has approved six dairy companies operating in the country for the importation of milk products and its derivatives.
The CBN made this known in a circular by the Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, in Abuja on Tuesday.
The bank listed the companies as FrieslandCampina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria PLC (MSK only) and Integrated Dairies Limited.
The bank explained that the development was in line with its objective to increase and improve the local production of milk, its derivatives and other dairy products in the country.
According to the circular which has taken effect, all Forms ‘M’ for the importation of milk and its derivatives by authorised dealers will only be allowed for the aforementioned companies.
Form ‘M’ is a mandatory statutory document to be completed by all importers for importation of goods into Nigeria.
It is therefore, mandatory for all importers to complete and register Form ‘M’ with Authorised Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not.
The bank advised importers not on the list of companies cited in the circular to cancel all established Forms ‘M’ for the importation of milk and its derivatives for which shipment had not taken place.
Speaking further on the intent of the circular, Okorafor explained that the bank engaged the six companies because they showed sufficient willingness and ability.
Okorafor said that those listed companies had adopted the CBN’s backward integration programme in order to enhance their capacity and improve local milk production.
He explained that the objective of the bank in that sector was to increase milk production in the country from the current figure of 500,000 metric tonnes to about 550,000 metric tonnes within the next 12 months.
In addition to facilitating easier access to funding for dairy investors, he said it was the bank’s desire to ensure that the country conserved foreign exchange, trigger economic growth and boost employment opportunities in the sector.

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