CBN Tells Okonjo-Iweala Trade Restrictions Policy for Local Industries Protection
CBN GOVERNOR
*As EU reports ban on importation of milk to WTO
The Central Bank Governor, Mr. Godwin Emefiele, Tuesday told the Director-General of World Trade Organisations (WTO) , Dr. Ngozi Okonjo Iweala that Nigeria’s trade restrictions policy was to protect local industries from unfavourable competition.
Emefiele told the WTO DG when she visited the CBN in Abuja that the measure was also to create jobs for Nigerians, adding that the rising unemployment rate was worrisome.
He said that by restricting importation of certain goods, Nigeria was creating a good operating environment for local industries who in turn will create jobs for Nigerians.
However, the CBN governor assured the international community that Nigeria was open to business from any country.
He disclosed that the apex bank restricted foreign exchange and other restrictions to dairy companies for not being part of the backward integration of the government for the sake of national interest.
The European Union (EU) had complained about the CBN’s trade restriction policies, Okonjo Iweala said.
On this, Emefiele further explained that the CBN did not take unilateral decision on the issue, adding that six major industry players all agreed to take action against companies not ready to be part of government’s integration programme which includes plan to boost job creation.
Emefiele said, “ I think it’s important for me to say that some of those things have been done to also help protect our own industries.
“We need to give a chance for our local industries to create jobs and employment.
“The unemployment rate in Nigeria, I dare say, is very high. Our youthful population of people of the age of about 18 to 40 is almost close to about 60 per cent of the population. You can use that to your advantage and you could also use that to your detriment.
“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.”
On the dairy companies issues, he added, “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. We called dairy companies.
“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.
“And at a meeting next door there, what did they say? They said, governor, you have been putting us under pressure to invest locally in the dairy industry- what do you do to those who are not doing anything about it?
“At that meeting, we took a decision that those who are not embracing our own backward integration programme in the dairy industry should be restricted.
“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.”
In his response, Okonjo Iweala said that CBN’s policy on protecting local industries can be further addressed by using WTO remedies instead of banning imports.
The Central Bank Governor, Mr. Godwin Emefiele, Tuesday told the Director-General of World Trade Organisations (WTO) , Dr. Ngozi Okonjo Iweala that Nigeria’s trade restrictions policy was to protect local industries from unfavourable competition.
Emefiele told the WTO DG when she visited the CBN in Abuja that the measure was also to create jobs for Nigerians, adding that the rising unemployment rate was worrisome.
He said that by restricting importation of certain goods, Nigeria was creating a good operating environment for local industries who in turn will create jobs for Nigerians.
However, the CBN governor assured the international community that Nigeria was open to business from any country.
He disclosed that the apex bank restricted foreign exchange and other restrictions to dairy companies for not being part of the backward integration of the government for the sake of national interest.
The European Union (EU) had complained about the CBN’s trade restriction policies, Okonjo Iweala said.
On this, Emefiele further explained that the CBN did not take unilateral decision on the issue, adding that six major industry players all agreed to take action against companies not ready to be part of government’s integration programme which includes plan to boost job creation.
Emefiele said, “ I think it’s important for me to say that some of those things have been done to also help protect our own industries.
“We need to give a chance for our local industries to create jobs and employment.
“The unemployment rate in Nigeria, I dare say, is very high. Our youthful population of people of the age of about 18 to 40 is almost close to about 60 per cent of the population. You can use that to your advantage and you could also use that to your detriment.
“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.”
On the dairy companies issues, he added, “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. We called dairy companies.
“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.
“And at a meeting next door there, what did they say? They said, governor, you have been putting us under pressure to invest locally in the dairy industry- what do you do to those who are not doing anything about it?
“At that meeting, we took a decision that those who are not embracing our own backward integration programme in the dairy industry should be restricted.
“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.”
In his response, Okonjo Iweala said that CBN’s policy on protecting local industries can be further addressed by using WTO remedies instead of banning imports.
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