Despite ban, foreign rice still crosses Nigeria’s borders

Despite prohibition by the Federal Government, foreign rice has continued to cross the borders into the Nigerian market with thousands of bags frequently being discovered and seized in warehouses across the country.

The latest seizure by the operatives of the Nigerian Customs Service (NCS) in Ogun and Lagos, put the quantity at 1,930 bags (50kg). According to the Comptroller General of NCS’ Strike Force, on Wednesday, the operatives evacuated the 1,930 bags of 50kg from different warehouses in Lagos and Ogun States.

Ahmadu Bello Shuaibu, coordinator of the Strike Force, Zone A, said the seizures were recorded during raids on suspected warehouses and markets in the Southwest zone in search of contrabands. The seizures are also coming barely one month after the Federal Government re-opened the nation’s land borders to economic activities.

Industry watchers believe the continued smuggling in of foreign rice is being spurred by the inability to meet local demand, and the porous nature of the Nigerian borders, some of which are not effective manned by security agencies.

While the Agriculture Promotion Policy, 2016 – 2020, shows Nigeria had a rice deficit of 4 million metric tons, it is difficult to accurately determine just how much increase has been recorded in local rice production.

The smugglers, analysts believe, are cashing in on the demand gap to bring the grain illegally into the country. Local rice farmers have been unable to upscale production capacity to meet local demand for the staple food, despite huge financial interventions in form of loans by the Federal Government through the Central Bank of Nigeria (CBN) and other channels. This has forced up price of the commodity with a 50kg bag selling between N20,000 and N25,000 in the market.

The Federal Government through the Central Bank of Nigeria (CBN) in 2015 placed a ban on importation of 41 items including rice from accessing foreign exchange in the official window.

Prior to that, the Federal Government had during Goodluck Jonathan administration put in place a 110 percent import duty and levy on rice to discourage heavy importation of the commodity that was taking place at that time. The policy generated several economic difficulties such that government was forced to reduce the tariff regime to 70 percent for importers and 20 percent for rice millers.

However, from January 2017, traded rice stopped coming into the port. And in January 2018, the Nigeria Customs confirmed that the CBN stopped issuing Form ‘M’ to importers for importation of rice.

Meanwhile, the Customs has decried high rate of false declaration of cargoes at the Nigerian ports just as it listed other seizures to include 1,227 rolls of chiffon textiles materials, 18 pallets of perfumes, cosmetics and bags, 2,064 cartons of electric bulbs as well as 1,810 cartons of alcoholic and non-alcoholic wines, all of which have been forfeited to the Federal Government.

“We have various degree of infractions on cargoes that were seized. Cargoes such as perfumes, non-alcoholic wines, electric bulbs, foot wears, bags and shoes were falsely declared as machineries and washing machine. Perfumes, non-alcoholic wines, electric bulbs, textiles are dutiable but foreign foot wears, bags are banned because we have factories investing heavily and employing Nigerians to produce them and we must encourage them,” Shuaibu explained.

“We are still appealing to our stakeholders that they should work hand in hand with Customs to ensure proper declaration of goods. The chiffon materials were brought in as machines when we have textiles companies that are struggling in the country,” he added.