A file photograph of sugar cubes.The Central Bank of Nigeria on Friday restricted the importation of sugar into the nation to some corporations: Dangote Sugar Refinery Plc, BUA Sugar Refinery Restricted, and Golden Sugar Company, which is owned by Flour Mills of Nigeria Plc.
In line with the CBN, in a inform signed by its director of alternate and replace division, Ozoemena Nnaji, the three companies “have made cheap progress in attaining backward integration” within the sugar sector.
Backward integration is when a firm expands its characteristic to fulfill projects formerly done by corporations up the provision chain.
It could perchance truly probably perchance additionally additionally be stale to measure how indispensable a firm has invested within the approach of a sector.
“The Federal Government of Nigeria below the Nationwide Sugar Pattern Council established the Nigerian Sugar Grasp Knowing to attend and incentivise sugar refining corporations of their Backward Integration Programme (BIP) for local sugar manufacturing,” the CBN inform said.
“Accordingly, the underlisted three corporations, who have made cheap progress in attaining backward integration within the field, shall finest be allowed to import sugar into the nation.
“BUA sugar refinery restricted, Dangote Sugar Refinery Plc, Golden Sugar Company.
“In stumble on of the foregoing, authorised sellers shall no longer originate Sorts M or catch entry to international replace within the Nigerian international replace market for any firm, including the three listed above for the importation of sugar with out the prior and categorical approval of the Central Bank of Nigeria because the monetary institution is charged with the mandate of monitoring the implementation of the backward integration programs of the total corporations.”