24/07/ · About three-and-a-half years ago when the policy on restriction of forex started, we considered including milk on the list of items that should be restricted from forex, but we conjectured that based on the kind of sentiments people would show, that we should be very careful 08/10/ · Oct 3, am. Oct 3, am. Muhammedfx. | Commercial Member. | Joined Apr | 1, Posts. Check out this free tool from babypips, looks awesome and interesting. 23/09/ · Therefore, although the CBN set out to ban the forex, it indirectly is still enabling the importation of milk by making forex available to milk importers through BDC at a higher cost. The only difference is the channel of forex accessibility for milk importers which would lead Estimated Reading Time: 4 mins
Emefiele Confirms Forex Restriction on Milk Importation | blogger.com
Central Bank of Nigeria CBN Governor, Mr. Godwin Emefiele, fielded questions from reporters at the end of a two-day meeting of the Monetary Policy Committee MPC in Abuja. He spoke on a wide range of issues, forex on milk, including restricting forex allocations to milk importers and getting banks to lend to the real sector. Governor, forex on milk, could you give clarification on recent reports quoting you to have been signalling the possibility of restricting forex for the importation of milk?
Yes there are reports. The reports either quoting me or quoting somebody in central bank saying that there are attempts to restrict FX on the importation of milk into the country is correct. It is very correct because we believe that milk is one of forex on milk products that can be produced in Nigeria today. And you all must have heard me at different fora ask question that we have seen the importation of forex on milk in Nigeria before many of us were born, precisely over 60 years, forex on milk.
West African Milk, Frieslandcampina, that I know as the foremost importer of milk has been doing it for over 60 years. If you Google West African Milk or Frieslandcampina today, even on the website, they say they have been importing milk or that they have been in Nigeria for over 60 years. For over 60 years, Nigeria has been importing milk. What really does it take to produce milk? Get the cow and give the cow plenty of water to drink and let the cow eat a lot of grass and the cow positioned in a place without roaming forex on milk, that cow gets fat and you can take milk out of it, forex on milk.
The reason some say our cows are not producing much milk is because our cows roam around. Under the pastoralist arrangement, you find out that during raining season, they are somewhere and forex on milk season recedes and dry and hot seasons come, they begin to move from where they are and as they move just as they are cows and not human beings, they consume whatever they find on their ways.
But unfortunately in that forex on milk, they create destruction to farm products and farm produce in the country. About three-and-a-half years ago when the policy on restriction of forex started, we considered including milk on the list of items that should be restricted from forex, but we conjectured that based on the kind of sentiments people would show, that we should be very careful.
We called in the management of the oldest milk importing company into Nigeria, WAMCO, into central bank in Lagos. We held at least three meetings with them. Their managing director came with one of the ladies and we held those meetings. We told them this would have happened but we decided not to allow it to happen that we are trying to use the opportunity to appeal to them to backward integrate.
Integrate backward and begin the process of development and producing your milk in Forex on milk. There are obviously two schemes, forex on milk, either the West African Milk or the milk importers acquire forex on milk and begin to graze forex on milk own cows and fatten them and take the milk, and of course, they can also be complemented by the pastoralist who own their own smallholder livestock farming arrangement- they can also get milk from them.
Indeed, they could also be seen to be supporting the pastoralists by getting them concentrated in a place instead of moving around and provide them facilities like water or hospitals or schools; I mean, if you are in a community and you want to enjoy the proceeds of that community there is nothing wrong in providing certain facilities to make those communities to blossom- provided with grass.
Even if you sell the grass to them and forex on milk proceeds of what you get in return will be your milk to recoup your investments. Those are the kinds of things that we expect companies that are importing milk into Nigeria to do, forex on milk.
Unfortunately, after three-and-a-half years, nothing has happened. Some forex on milk them said they started pastoralist arrangement and all that. And to some extent, forex on milk, you should help us also to reduce the rate of the herder-farmer conflict. Perhaps, if you had started this journey about three to three-and-a-half years ago with us, by now, forex on milk, the herder-farmer conflict that we see today in Nigeria would not have been as intense as it is at this time.
We would need your help at this time because we can no longer wait for you to continue to be importing this product into Nigeria because we are convinced it can be produced in Nigeria. That is our story. But, of course, before we knew it, forex on milk, I hinted at that meeting which was the last meeting in Lagos last week Friday that we are not going to continue to allow this process to continue where they prefer to import into the country rather than backward integration.
Of course, certainly, what you would expect is that they went under their association and went to the manufacturers association and Lagos Chamber of Commerce and began to lobby. And I had heard even Muda Yusuf also commenting about milk importation.
I keep saying this: Nigeria belongs to us, when we have policy, we want people to respect the policy of this country. We are saying that how much we spend importing milk is too high, forex on milk, we need to reduce it. We are saying that by doing backward integration, it helps to limit or reduce the herder-farmer conflict in Nigeria and we are determined to make milk production in Nigeria a viable economic proposition and we would need to support that.
We are saying if we restrict it or by the time we do so, if you need a loan to acquire land, we would give you forex on milk if you need a loan to do artificial insemination of your cows or you need a loan to grow your grass, in fact, you need a loan to even produce water, forex on milk, we would give you loan. But that you will continue to import milk forex on milk the country, I think we are getting to the end of the road and that is basically what we discussed.
I will say and I repeat that we are really getting to the end of the road and the era of forex on milk of foreign exchange for the importation of milk is really coming and would come very sooner than they expect. Lastly, in that meeting, WAMCO came and said they would join this initiative for dairy production and not only dairy production by the company but to support the activities of pastoralists.
If they would not change their policy, we would not change our policy. We want people to produce milk in Nigeria and that is our position on that. Last weekend, there were reports that you have restricted banks from the treasury bills forex on milk, could you clarify the situation as this has caused some anxiety in the market?
You will recall that at the last MPC meeting in MayMPC Committee mandated management that given that we observed at the meeting that there was a flat position in lending from DMBs to the industry; that there was need for management to look into how the banks can be refocused to do more of the lending to the private sector in order to grow the economy.
Like you all know, the only set of institutions or persons by law that can conduct financial intermediation from a surplus sector to a deficit sector are banks. If they cannot provide that responsibility, then we are having problems. We will love to see the banks as financial mediators to play this role because that is one way they can be seen from the monetary policy side to catalyse growth in the Nigerian economy.
And in an attempt to do that, two weeks ago, forex on milk, we released a guideline that prescribes the minimum lending ratio for banks because we said we would no longer allow a situation where banks collect deposits from customers and all they do is bring the money to the CBN or to government to invest in instruments and after 90 days, days, one year, they come to CBN and we cut them a cheque and they put it as income in their balance sheets and then they declare billions of naira; I am a banker myself.
It is part of their roles but the core role that is required and desired from the banks today is that they should act as financial intermediators to provide credit to the private sector of the economy. And in that guideline, we said we would give them certain carrots or incentives that when they lend to the consumer credit, forex on milk, mortgage credit, to SMEs, that we will grant them certain dispensations that they will be happy about but that if they do not do it, then we would apply certain sanctions that would lead to taking at least 50 per cent of the unlend portion of their loans into the CRR, forex on milk.
The deadline is September 30 and after that day, we are going to begin a month-by-month monitoring and prescription of loan deposit ratio to the banks. So, what did we do? In an attempt to begin to make them understand that we are serious, last week, forex on milk, we did an auction for two reasons; one, signal that yes, we are still on the tightening mood because we are not going to go with the fiscal in terms of trending so aggressively downwards in rate, so we signalled close to about It was meant to be a special auction and I am sure general auctions will continue but at some point from time to time, we can introduce special auctions to provide special signal to provide certain signals and really direct the focus of actors in the money market or financial market about where we want them to go.
So, the story that maybe there are plans to bar banks from treasury bills and OMO is wrong. And it is important that we say this that when the MPC raised forex on milk concern that had a flat loan deposit ratio, when we computed it, it was just about 57 per cent.
Whereas, forex on milk, in other climes, loan deposit ratio in some cases is even more than per cent; and I give you example. In Brazil, loan deposit ratio as at today is about 70 per cent. In United States, 75 per cent; China Nigeria at 57 per cent is too low and we need to get the banks to play their roles of financial intermediation and hence the reason we would continue to prescribed these ratios and let banks know our direction on this policy, forex on milk.
Governor, you mentioned that core inflation as at June was 8. Now if we have this for a long period of time, are we likely to see a 50 basis points reduction in MPR to around 13 per cent? Like we said, we will like to see inflation trend into single digit territory. That the CBN itself has set an inflation target of six to nine per cent and because we are still above that threshold, we will only do so cautiously, either through signaling; but we are not going to be in a hurry to moderate or to bring down the MPR.
However, forex on milk, we are saying without necessarily altering or adjusting the MPR that we can take other measures like the measure that we adopted about prescribing minimum loan deposit ratio to the banks.
That will help in a drive to increase the loan deposit and indeed, because banks themselves know that if they do not do what we want, as raised in the guidelines, we would take the money that they have and put them in CRR and because they know that it is a big challenge for them, forex on milk, that is why the rates are beginning to trend. In fact, there is a price war going on now; so if you are a bank customer, forex on milk, you borrow.
If bank A comes to you, you need to begin to price your loans because they will certainly come down, which is the direction we want on lending in Nigeria. It is important for us to know that the CRR facility is the faculty that we are offering as our own intervention facility. When you release money from the CRR to fund those interventions, forex on milk, it is also policy that blunts the efficacy of tightening policy. And we have said that those who would benefit from the CRR funding would be those who are truly into core agriculture and expanding importing plants and machinery to expand their manufacturing capacities.
So, we would only continue to say that if you are into core agriculture or you want to expand your plant and machinery, of course, if you approach your banks, we do expect that they would present your facility to us for us to approve and disburse the money. You must be logged in to post a comment. This site uses Akismet to reduce spam. Learn how your comment data is processed.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. If you disable this cookie, forex on milk, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again. Search for:. Ng All Your Industry News At a Click. Facebook Twitter LinkedIn WhatsApp Telegram. Related tags : CBN Fore ban FrieslandCampina WAMCO. About Author. Victor Okeh.
Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, forex on milk, politics and finance, and entrepreneurship articles.
Forex on milk can be reached via — [email protected]. Previous Article Russian Boxer Maxim Dadashev Dies of Injuries Suffered During Match. Next Article Senate to Commence Screening of Ministerial Nominees. May 9, 0 Facebook Twitter LinkedIn WhatsApp TelegramCaptain Emmanuel Ihenacho, a former minister of Interior and a top shot in the maritime and oil sectors, in this interview, tasked the government to create a.
July 13, 0 Facebook Twitter LinkedIn WhatsApp TelegramJoy Nunieh, former acting managing director of the Niger Delta Development Commission NDDCforex on milk, has accused Godswill Akpabio, minister of Niger Delta affairs. January 5, 0 Facebook Twitter LinkedIn WhatsApp TelegramLagos State Governor Akinwunmi Ambode has proposed a budget estimate of N
Let's milk forex brokers
, time: 0:31CBN reacts to criticisms of forex policy on milk - Eye Witness
26/07/ · “Our focus remains forex savings, job creation and investments in milk local production.” One of the critics of the new policy is Nigeria’s former education minister, Obiageli Ezekwesili, who on Friday said the CBN’s foreign exchange policy on milk importation is dangerous to the poor 11/02/ · In July , the apex bank announced a plan to restrict forex for milk importation. The announcement drew the ire of many Nigerians. While many interest Estimated Reading Time: 4 mins 24/07/ · About three-and-a-half years ago when the policy on restriction of forex started, we considered including milk on the list of items that should be restricted from forex, but we conjectured that based on the kind of sentiments people would show, that we should be very careful
Geen opmerkings nie:
Plaas 'n opmerking