Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture is making a case for local milk and dairy farmers.
NACCIMA believes that removing the ban on FX access for milk and dairy products is inimical to the growth of local farmers.
The organisation wants the government to rethink the decision.
Indeed, importers face a lot with the Naira value challenge and customs duty fluctuations.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has kicked against lifting of foreign exchange restrictions on importing milk and dairy products.
NACCIMA’s National President, Dele Oye, expressed this concern over this policy in a statement.
He made the statement while considering the Naira’s current depreciation and the inconsistencies observed in customs duty payment.
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While acknowledging the CBN’s efforts to refine trade policies in alignment with the evolving economic landscape.
Oye warned that the move could result in the decline of local production.
“Lifting restrictions on dairy import by all entities and barring selected companies, suggests a strategic move towards liberalising the sector, which is commendable.
Hampers Ease Of Doing Business
“However, as a professional body deeply invested in the growth and stability of Nigeria’s economy.
“We must express our concerns regarding the potential ramifications of this policy change.”
According to him, the fall of Naira, already placed a huge burden on importers, with the increased cost of FX affecting the prices of goods and services.
“The recent policy shift will potentially increase competition and broadening market access.
“It could also exacerbate this burden, leading to higher retail prices for milk and dairy products, ultimately affecting the end consumers.
“In addition, inconsistent customs duty payments have been a significant challenge for businesses in Nigeria.
“This inconsistency hampers the ease of doing business and creates an unpredictable trading environment.
“A policy change of this magnitude requires a concomitant strengthening of customs regulations to ensure that all stakeholders are on a level playing field,” Oye added.
Also, NACCIMA recommended that domestic producers be allowed to adjust to the new competitive landscape while preserving the value of the Naira.
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It requests that “there should be a robust support system for local dairy farmers to boost domestic production.
“This will reduce over-reliance on imports in the long term.
“Also, customs duty payments should be harmonised to foster transparency that will aid the success of this policy”.
