Importation policy: Putting the cart before the horse

In recent times, the Central Bank of Nigeria (CBN) has been initiating many policies all in the name of boosting the economy. But with the inconsistencies in policy implementation over the years, many think the policies are making less impact.

The apex bank set for itself, a target of 80 percent financial inclusion by 2020, claiming that it would reduce poverty. That target is supported by some policies, particularly the cashless policy, and will be difficult to meet with the 23.1 percent unemployment rate in the country.

Again, the apex bank came out with a policy to discourage the importation of milk, while the Federal Government closed the borders to ensure no grain of rice is smuggled into the country.

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If one may ask, is the CBN or rather Nigeria putting the cart before the horse? In Economics, importation is only discouraged when a country is self-sufficient in local production of items it used to import. But is Nigeria self-sufficient in milk and rice production? Of course, with the saga of the much-anticipated ‘Lake Rice’, Nigerians know better. So far, the policies on discouraging importation seem to be in favour of some selfish interests and not the masses that are buying the products at double the price and enriching the selfish business interests.

On Friday, Godwin Emefiele, CBN governor, named four dairy product manufacturers that have commenced the process for the local production of milk in the country. It is a process and not the production proper.

He also said that the four companies- Friesland Campina WAMCO, Neon Agro, Chi Limited and Irish Dairy- have already expressed interest to invest in Bobi Grazing Reserve in Niger State.

But the story would have been that the four companies have started producing milk locally and due to the huge volume of their combined production, Nigeria will no longer import dairy products from other countries.

As well, the Federal Government should have announced that the local production of rice has grown to a self-sufficiency level, hence the war against smuggling and no more importation of rice from Thailand.

READ ALSO: CBN’s import ban and Nigeria’s looming maize crisis

If you go to the market, you hardly see the local rice, if you go to the super market you will see some brands that are claimed to be local, but there is nothing local about them apart from the address of the place they were re-bagged in Nigeria.

Yes, discouraging importation is good because it will discourage capital flight, encourage local production, boost proficiency of locals and also create jobs.

But that is when “all things are equal”; when we have consolidated on the success of local production to a self-sufficiency level, otherwise, it will be counterproductive as the recent policies seem.

How do you explain the fact that rice still crosses the borders to Nigeria? You have only succeeded in making the item contraband and encouraging customs to make money from smugglers, while the poor masses who cannot do without the staple food, buy it at exorbitant prices.

So, who is producing rice, milk and other items on the watch list, and where are the products for the hungry masses to buy, even if they can afford it? Are we engaging in self-deceit here?

Obinna Emelike