NIGERIA – The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that the apex bank will closely monitor and regulate new entrants into the forex market interested in the dairy industry.  

Speaking at the recently concluded Monetary Policy Committee (MPC) meeting in Abuja, Cardoso emphasized the importance of adopting a nuanced approach to intervention rather than resorting to direct developmental interventions. 

Cardoso explained that the decision to lift FX restrictions on dairy products was aimed at promoting transparency and attracting investments into the market.  

He highlighted that while only six companies are currently permitted to import dairy products and derivatives, the CBN aims to maintain an open and transparent market environment without restricting participation. 

“We believe that it is not our responsibility to constrain anybody who wishes to participate in the foreign exchange market,” Cardoso stated. 

We will maintain an open and transparent market and allow those with the capability to engage in their respective areas of interest.” 

In addition, addressing concerns about the recent distribution of fertilizers to farmers, Cardoso clarified that the CBN is not seeking a return to direct interventions but rather collaborates with entities deemed capable of effective intervention, including capacity building initiatives. 

The distribution of fertilizers was part of a pre-existing intervention and not directly undertaken by us, he explained. 

 Our decision to hand over the fertilizers to the Ministry of Agriculture was based on the belief that they could effectively manage distribution to farmers.” 

Meanwhile, the CBN Governor has reaffirmed the bank’s commitment to facilitating a transparent and inclusive forex market while collaborating with relevant stakeholders to support key sectors such as dairy production and agriculture. 

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