Ezekwesili Kicks Against CBN Planned Restriction of FX on Milk Imports

Former Education Minister and Vice-President of the World Bank’s Africa division, Oby Ezekwesili has come out against the new Central Bank’s planned policy to restrict foreign exchange to milk importers as a way to boost local production.

Ezekwesili, in a series of tweets from her official twitter handle, described the new CBN plan as policies borne out of vindictiveness.
“Nothing more perverse of Political Leaders and Policy Makers as Policies borne out of Vindictiveness. It appears from what the CBN said on the #MilkBanPolicy that it is a case of: “You folks rejected RUGA, here is your punishment.” “What a BIG SHAME that would be,” she said.

She continued: “Often I read or hear Nigerians say: “We have good policies/laws. Our problem is lack of implementation”. How wrong they are! The bane of our failure to achieve sustained economic growth that reduced Poverty in other countries is actually, BAD…..dangerous Policies/Laws.”
“Milk consumption by Nigerians: 1.7 Million milk production in Nigeria: 600,000 tonnes. When #MilkBanPolicy happens, to avoid Scarcity which Prices Milk up and out of the reach of the Poor, Nigeria needs to immediately triple current production of milk.”

“Nigeria has the highest number of children less than 5 years with chronic malnutrition (stunting or low height-for-age) in sub-Saharan Africa at more than 11.7 million, according to the most recent Demographic and Health Survey (DHS) (National Population Commission)”
“Child Poverty is even worst in a country that holds the ignoble record of being the World’s Capital of Extremely Poor People; our President should be fleeing from Policies that escalate Poverty. The CBN #MilkBanPolicy is dangerous. Dangerous for the Poor.
Other Nigerians have also been speaking out against the planned policy change by the CBN.
Kalu Aja, a financial planning expert on his twitter handle said a ban on forex for milk imports will make milk become more expensive locally.

Nothing more perverse of Political Leaders and Policy Makers as Policies borne out of Vindictiveness.
It appears from what the @cenbank said on the #MilkBanPolicy that it is a case of: “You folks rejected RUGA, here is your punishment.”
What a BIG SHAME that would be.
STOP IT!

— Oby Ezekwesili (@obyezeks) July 26, 2019

“Most of the cows in Nigeria processed for beef are imported. Nigeria also imports raw hides, leather and fur skins. From 2014 to 2017, Nigeria spent N1.3t on live animal imports,” he said.
“Banning imported milk is a policy known as import substitution. I support import substitution. Imported beef is banned in Nigeria, but live cattle imports are not. An equitable policy is to ban all imports of cattle dead or alive and cattle by-products.”
“If milk is banned, will baby milk be also banned.”

“Just like banning Rice, a ban on forex for milk imports will make milk become more expensive locally. As long as local supply cannot meet local demand, there will be imports. Nigeria has no cold chain thus a ban on milk means bulk of milk produced will be powdered.”
Also speaking in the same vein, Tunji Andrews, an economist, on his official and verified Twitter handle, said what a FX ban will do, is take away the last source of fortified nutrition from poor Nigerian children.

Milk Consumption by Nigerians:

1.7 Million

Milk Production in Nigeria:
600,000 tonnes.

When #MilkBanPolicy happens, to avoid Scarcity which Prices Milk up and out of the reach of the Poor, Nigeria needs to immediately TRIPLE current Production of Milk. @cenbank

— Oby Ezekwesili (@obyezeks) July 26, 2019

“So, I’ll say it, so that it’ll be on record that it was said With Nigeria’s stunting rate at 43.6%, wasting at 10.8% and underweight children at 31.5%, the CBN’s plan to ban FX for milk importation is a bad idea. This could threaten our future, while we are concerned about now”.
“At the moment, Nigeria produces 600k tonnes of milk but consumes 1.7m tonnes annually.

CBN governor is worried about the FX being used to fund the shortfall (rightly so) But what an FX ban will do, is take away the last source of fortified nutrition from poor Nigerian children”
“With the ban, N50 sachet milk will only experience what all other beverages in Nigeria experience to manage cost Quality will reduce and be blessed with more sugar to improve taste Note that’s it’s not illegal to sell unfortified milk in Nigeria as it is elsewhere”

“What we risk is building an army of physically and mentally incapable adults who may become leaders like we don’t have enough problems Right now over 40% of children in Nigeria are stunted before you say the ban will force local build-up Let me ask you With which electricity?”

July 26, 2019