The three companies have made reasonable progress in achieving backward integration in the sector and shall only be allowed to import sugar into the country
The Central Bank of Nigeria has said Dangote Sugar Refinery Plc, BUA Sugar Refinery Ltd and Golden Sugar Company are the only three companies that can import sugar into the country.
The CBN stated the reason the three companies were the only ones allowed to import sugar into the country is because of their notable contribution to the backward integration programme introduced by the Federal Government.
The country’s apex bank added that henceforth, no company outside the aforementioned three should import sugar into the country.
CBN’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji, disclosed this in a circular issued on Friday by the bank’s with reference number TED/FEM/PUB/FPC/01/006.
The circular read, “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 under listed 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 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 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.”
Recall that in April, the CBN Governor, Godwin Emefiele, stated that the bank planned to include sugar and wheat on the list of import items banned from accessing foreign exchange.
He had said, “We are looking at sugar and wheat. We started a programme on milk about two years ago. Eventually, these products will go into our FX restriction list.”
Nigeria currently spends between $600m to $1bn on sugar importation annually.
