CBN Bans Forex For Cassava Derivatives
Following the massive cultivation of cassava that has led to the increase of its derivatives, Central Bank of Nigeria (CBN) has struck out cassava derivatives from the list of imported items that can access foreign exchange.
The derivatives affected are starch, ethanol and others which importation gulps $600 million annually.
To complement the CBN’s efforts, Kogi State government has set aside 1.35 million ha of land for cassava cultivation and has, in addition plan to establish a processing plant to produce ethanol.
CBN Governor, Godwin Emefiele disclosed the latest development to 20 state governors who sought the Apex bank’s assistance to industrialize the states through agriculture.
Emefiele said “CBN will focus on sectors that can create jobs on a mass scale. However, we will also be paying closer attention at financing sectors that can help the country reduce its burgeoning import bill and conserve much needed foreign exchange.”
“We have begun to restrict foreign exchange to those who want to import cassava starch, ethanol and all other derivatives into Nigeria.”
The Governors of Bauchi,Imo,Ekiti,Sokoto, Katsina, Anambra, Lagos, Benue, Edo, Ogun, Jigawa, Borno, Zamfara, Kebbi, Osun, Adamawa, Gombe and the deputy governors of Kaduna and Ebonyi had all at meeting with the CBN, tabled their request for support to bolster their earnings and create jobs for the teeming youths.
In his address, the CBN governor, Godwin Emefiele told the governors that “the ultimate objective of the apex bank is to make the States economically viable through enhanced investments by the private sector.”
These investments he noted “would in turn create more economic opportunities at the sub national level, engage our teeming youths in meaningful enterprises, improve internally generated revenue base for states to meet the developmental expectation of its citizens.”
Emefiele told the governors that the CBN has identified 10 key commodities including Rice, Cotton, Oil Palm, Tomato, Cassava, Poultry, Fish, Maize, Cocoa and Livestock/Dairy as key enterprises to be developed along the value chain to achieve the above stated goals.
With regards to the controversial milk/dairy forex import restriction, the CBN Governor disclosed that “as at today, four (4) companies have expressed interest to invest in Bobi Grazing Reserve in Niger State. Friesland Campina WAMCO and Neon Agro agreed to take 10,000 ha of land each, while Chi Limited and Irish Dairy are to develop 4,000 ha each. The State Government retained the remaining 3,000 ha for its development programmes.”
In addition he stated that “Nestle plc has indicated interest in developing its dairy project in Abaji, FCT. We are in contact with relevant government departments to fast track land acquisition and issuance of title documents.”
For palm oil initiagtives, Emefiele said “over 40 applications from investors across the country for the cultivation of 126,694 hectares are being considered. NIFOR being the flagship oil palm research institute in Nigeria is being rejuvenated in collaboration with the leading oil palm major companies to meet the seedling needs of investors in the subsector.”
He however lamented that some state governments were slow in issuing title documents to interested investors despite th pledge made by 14 state governors to make land available.
The bank he added “will maintain a keen interest in supporting the creation of an enabling environment to trigger private sector investment and curb the growing trend of medical tourism, which has depleted the nation’s foreign reserve.”
The bank’s emphasis he noted “will focus on value chain financing the 10 priority commodities. These products have been responsible for a significant share of our country’s food import bill in the last couple of years.”
Jigawa state governor, Mohammed Badaru Abubakar in his appeal said “all the state governors are committed towards developing zero oil economy and will cooperate with the CBN to industrialize the states.”
Also speaking at the meeting, Benue state governor, Samuel Ortom pleaded with the CBN to help the states improve their agricultural industrialization efforts. Taking a short at RUGA, he insisted that ranching is global best practice as against RUGA and also appealed to the CBN to see how it can intervene in the provision of electricity.
On his part, Lagos state governor Babajide Sanwo-Olu asked for the apex bank’s intervention in the provision of “huge warehouses and cooling facilities to improve the shelf life of products as well as the avenues to improve infrastructure and capacity.”
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