Alleging incapability on the part of the Nigeria Customs Service to check the menace of smuggling, a new of local growers and importers of rice has raised alarm that Government may have lost a whopping N27Billion since January when government reviewed its policy on importation of rice.
Alleging incapability on the part of the Nigeria Customs Service to check the menace of smuggling, a new of local growers and importers of rice has raised alarm that Government may have lost a whopping N27Billion since January when government reviewed its policy on importation of rice.
The group under the aegis of Patriotic Rice Association of Nigeria (PRAN) said in Abuja yesterday that, “massive and incessant smuggling of rice into Nigeria had thrown the rice industry into turmoil with severe consequences for government revenues, the economy and future plans for rice self-sufficiency” and alleged that rice smugglers have overrun the Nigeria Customs Service at the nation’s land borders.
In a statement jointly signed by Alhaji Habibu Maishinkafa, Chairman, and Martins Okereke, Secretary, PRAN said given the free reign enjoyed by rice smugglers, “a bleak future lies ahead of local rice growers and traders legitimately involved in rice trade.”
Tracing the origin of this sorry state of affairs in the country, the association said: “The Nigerian rice industry seems to have been thrown into a turmoil since the import tariffs were increased exponentially effective January 2013.
“Matters got complicated further with the reported inability of Nigerian Customs to control smuggling of rice across the country’s borders with Benin.”
According to the group, the higher tariff and consequent high market prices have enthused smugglers to push large volumes of rice into Nigeria with zero duty, thereby unsettling the Federal Government’s efforts to make Nigeria self sufficient in rice production by 2015.
They raised alarm that “large-scale investments made into the farming and milling industries by private businesses are also in jeopardy, following Customs’ inability to protect the industry from the vagaries of smugglers.”
They alleged that not less than 400,000 metric tonnes of rice from various origins have entered into Nigeria since January 2013, “dealing a major financial blow to legitimate importers and rice millers.”
“The Nigerian rice consumers are in the process shortchanged,” they went on, “with inferior brands being smuggled and then re-bagged into quality brands and sold at higher prices.”
They further alleged that several vessels with cargoes totaling more than 220,000 metric tonnes from Indian and Thai origins have flooded the ports of Benin and Cameroun in order to eventually find their way to Nigeria through the land borders.
To further buttress their claim, PRAN gave the identities of ships laden with 90,000 metric tonnes of rice from India, heading towards Cameroun and Benin Republic to include MV Lord Curzon, MV Santa Barbara, MV Zeynupkiran, MV Emenates and MV Captain.
“Vessels from Thailand with cargoes of more than 130,000 metric tonnes are shipped to Benin on vessels MV White Fin, MV Makra, MV Blanco Zealand and others.
“Several container loads totaling over 150,000 tonnes since the start of 2013 have also started penetrating through the borders through Benin, Niger Republic, borders with Northern Nigeria and in the East with Yaounde.
“More than eight million bags of rice have flooded all markets, including Alaba, Daleko, Ideo, Singer and other prominent nationwide markets.”
PRAN said they were joining the prominent rice associations in the country to urge that the Nigeria Customs Service to act swiftly and totally clamp down on such illegal imports to be able to contain any further damage.
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