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EU Displeased With Nigeria’s Ban On Milk Importation – Okonjo-Iweala

Published

4 years ago

Mar 17, 2021.

Ngozi Okonjo-Iweala, director of the World Trade Organisation (WTO), says the European Union is unhappy and dissatisfied with Nigeria’s move to restrict Importation of milk and dairy products.

As gathered by EKO HOT BLOG, The former finance minister disclosed this on Tuesday in Abuja when he met with Godwin Emefiele, the governor of the Central Bank of Nigeria.

Okonjo-Iweala, who is currently on a working visit to Nigeria, said the European union made known their displeasure and reservation regarding the import restriction to world trade organisation.

She said the EU has filed complaints against Nigeria over the restrictions.

As part of efforts to protect naira, conserve scarce forex and strengthen local production, the CBN had said it would no longer provide forex for milk importation.

The WTO DG said: “I have to raise issues about the BoP (Balance of Payment). We have a complaint against us by the EU about the use of devaluation of the balance of payments’ agreement with respect to trying to protect the dairy industry.

“And they feel that this is not the right instrument. So as DG WTO, I have to make this known.”

Defending Nigeria’s policy decision, Emefiele said the import restriction became imperative in the light of flagrant disregard for its backward integration programme by dairy companies.

“We called a meeting about six years ago when I resumed. I said look, Nigeria has dairy potential by the cattle and the rest of them; let’s see what can be done. Nothing was done,” the CBN governor explained.

“Two years ago, we started again, we said listen, we are going to start a programme where we are going to place FX restrictions on those who want to import dairy into Nigeria. Six of them came on board- Friesland and a few of them”

Okonjo-Iweala

Emefiele said a consensus was reached at the meeting to restrict those who did no key into Nigeria’s backward integration programme in the dairy sector.

“It was not my decision, it was a decision taken. Before you (Okonjo-Iweala) were probably born or before I was born, Friesland Campina has been importing milk into Nigeria, how come for over 60 years nothing has been done by this company to backward integrate and begin to produce dairy in Nigeria?

“Does that mean Nigeria does not have the potential? The answer is no. So that’s why we in the monetary and fiscal authority must put everybody’s feet on fire so that the right things are done for the good of Nigeria and Nigerians.”

Emefiele said local industries need to be given a chance to create jobs given the high rate of unemployment among youths, who account for close to 60 percent of Nigeria’s population.

“We do know one way or the other, people may have said a few things about the way we have conducted our trade, but I think it’s important for me to say that some of those things have been done to also help protect our own industries.

“The fact that we need to create jobs for this set of people, we need to create an enabling environment for this set of people to live a gainful life, means that we have a responsibility to do so and in doing so, we will need the support of institutions like yourself (WTO) to work with us.

“We may have faltered in a few areas, I am not going to deny that, we will be willing to engage with you (WTO) in areas where we have concerns. And if those concerns are addressed, I want to assure you madam DG that we will work with you.”

In response, Okonjo-Iweala advised Nigeria to deploy WTO’s trade solutions which would help protect local industries without resulting to import restrictions.

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