Nigerian Employers’ Consultative Association (NECA) has advised that the Central Bank of Nigeria (CBN) consults widely with industry stakeholders before delving into its planned restriction of foreign exchange on importation of milk.
NECA believes that creating an environment for further engagement of stakeholders will enable the CBN weigh the merits and demerits of the policy in the long term.
Timothy Olawale, the Director General of NECA, who stated this Wednesday, posited that while the employer’s body understood and acknowledged the imperative for backward integration on the long term, the proposed restriction of forex, in the consideration of NECA, was too sudden and “have the potential of crippling businesses which are already struggling.”
Without prejudice to the long term benefits of backward integration, the short-term consequences, without a deliberate and acceptable plan by critical stakeholders could be catastrophic for local businesses in the value-chain,” said Olawale.
According to NECA, contrary to the postulation that local cows are good enough for milk production, massive investment would have to be made for the importation of dairy cows for milk production.
Olawale argued that due to gap that would be created between local supply and demand, unscrupulous elements would have a field day importing milk with attendant loss of revenue to government, massive loss of jobs with attendant social consequences.
“On the need for a long-term backward integration plan, the DG stated that cow husbandry in Nigeria had been proven not to be ideal for milk production but for consumption only.”
Proffering a way forward, NECA urged the CBN to “soften its hard-line stance and listen to the concerns of stakeholders.”
He further advised the apex bank to, in the interim, suspend the planned restriction and engage in extensive consultation with all stakeholders.
