The Central Bank of Nigeria has limited the importation of sugar into the country to three companies: Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited, and Golden Sugar Company, which is owned by Flour Mills of Nigeria Plc.
A statement signed by CBN director of trade and exchange department, Ozoemena Nnaji, on Friday said the three firms “have made reasonable progress in achieving backward integration” in the sugar sector.
Backward integration is when a company expands its role to fulfil tasks formerly completed by businesses up the supply chain.
It can be used to measure how much a company has invested in the development of a sector.
Read Also:Dangote Sugar denies involvement in price fixing, encourages healthy competition amongst players
According to the statement,“The Federal Government of Nigeria under the National Sugar Development Council established the Nigerian Sugar Master Plan to encourage and incentivise sugar refining companies in their Backward Integration Programme (BIP) for local sugar production.”
Read Also:Dangote Sugar Refinery reports N26.70bn profit for 2020
“Accordingly, the underlisted three companies, who have made reasonable progress in achieving backward integration in the sector, shall only be allowed to import sugar into the country,” said the statement.
“BUA sugar refinery limited, Dangote Sugar Refinery Plc, Golden Sugar Company.”
“In view of the foregoing, authorised dealers shall not open Forms M or access foreign exchange in the Nigerian foreign exchange market for any company, including the three listed above for the importation of sugar without the prior and express approval of the Central Bank of Nigeria as the bank is charged with the mandate of monitoring the implementation of the backward integration programs of all the companies.”
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