CBN’s Backward Integration Programme Lauded | TimeTestedNews


The Central Bank of Nigeria’s (CBN’s) policy to encourage backward integration of the local production of select items, including dairy products to save depleting national reserves, has been lauded by a stakeholder.

The new policy offers challenges and opportunities for major manufacturers of milk and dairy products and is expected to help in reviving local production capacity and create employment for the populace.


One of the major dairy companies that has keyed into the initiative,  CHI Limited, explained that despite the challenges of dairy backward integration policy like the incessant herders/farmers clashes, the opportunities in the value chain are numerous.

In partnership with the Niger State Government and Central Bank, CHI Limited is investing in  infrastructural development, upgrade of facilities and construction of new ones at the Bobi Grazing Reserve, a pilot grazing reserve in Maringa Local Government, Niger State.

Managing Director CHI Limited, Deepanjan Roy lauded the apex bank for the initiative and the Niger State Government for their support.

“We are proud of our strategic partnerships and investments in the backward integration project of the Central Bank of Nigeria.

With the support of the Niger State Government, we would work towards ensuring that this pilot scheme achieves its medium and long-term objectives of job creation, strengthening the supply chain of the dairy category in which we play, provide good raw materials to support our local company, provide consumers with more access to nourishing, healthy dairy products, and be the model for successful dairy backward integration,” he said.

With the acquisition of over 4,000 hectares in the reserve, the company is partnering pastoralists to provide 2,000 hectares to allow for settlement and grazing for their cows.

It has made available 1,200 hectares to subsistence farmers for grain production and another 300 hectares for growing some of the best breed of pasture – Napier grass, an essential fodder known to improve milk yield in cows.

The final stretch of 800 hectares has been set aside for development of support facilities, specifically a milk collection and processing center where all the milk produced from the cows will be collected and processed in a hygienic manner.

CHI Limited has also invested in the rehabilitation of the 15-kilometre road leading to the grazing reserve to improve access and reconstruction of its dam to ensure collection of adequate water for grazing the cattle, irrigation for farming, and other purposes on site.