The Central Bank of Nigeria (CBN) said it has no power to ban the importation of milk into the country.
In a statement by its Director of Corporate Communications, Mr Isaac Okorafor, the bank stated its resolve to provide the needed financial support for genuine investors who want to engage in milk production.
It added that it was committed to reducing the rate of importation while encouraging local production of milk in Nigeria.
The apex bank explained that all it did was to restrict the sale of forex for milk importation from the Nigerian foreign exchange market.
It decried that although there have been some successful attempts at producing milk locally, a majority of the importers still treat what it described as national aspiration with contempt.
The financial regulator also said a group of people was trying to mislead Nigerians on its proposed policy aimed at promoting the local production of milk.
It, however, insisted that it would remain focused on the welfare of the Nigerian masses, as a people-oriented and apolitical institution.