The policy implemented by the Central Bank of Nigeria on milk importation has been criticized by the Lagos Chamber of Commerce and Industry (LCCI), which held that the policy will breed more negative effects than positive to the investors and citizens.
The Director-General of the LCCI, Mr. Muda Yusuf, also maintained that the policy will create supply gaps in the market with severe harmful consequences.
Recall that on July 24, the Central Bank of Nigeria (CBN) announced that it will restrict access to foreign exchange for importation of milk into the country, insisting that there are abundant resources to produce milk in Nigeria.
“The policy will do more harm than good, both to investors and the citizens. It would trigger avoidable disruptions and dislocations in the investment environment and further undermine investors’ confidence. It would create huge supply gaps in the market with severe harmful consequences.” Yusuf said.
According to LCCI’s Director-General, the Nigerian economy is not fully equipped to carry out the policy, adding that “We currently do not have dairy cows in the country, the dominant milk-producing system in Nigeria is the Fulani nomadic system whose cows have a milk yield of fewer than two liters per day. Whereas a good dairy cow will produce an average of 28 liters of milk per day over 10 months. “ He explained.
Yusuf further explained that during peak lactation, a high yielding dairy cow can produce as high as 60 liters of milk per day. The reality is that Nigerian cows have very low yield because of poor genetic composition, poor feeding practices and the laborious nomadic system of breeding.
He noted that these were underlying issues that must be fixed before embarking on any form of import restriction.