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Nigerians have been left surprised following the decision of the Central Bank of Nigeria (CBN) to limit the importation of sugar into the country to three companies namely Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited, and Golden Sugar Company, which is owned by Flour Mills of Nigeria Plc.
According to a statement released by the apex bank which was signed by its director of trade and exchange department, Ozoemena Nnaji, the three firms “have made reasonable progress in achieving backward integration” in the sugar sector.
Africa Today News, New York understands that backward integration is when a company expands its role to fulfill 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.
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‘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,’ the CBN statement said.
‘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.
‘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’ the statement concluded.
AFRICA TODAY NEWS, NEW YORK