Checking smuggling of rice, wheat import

Despite efforts by the Federal Government to check the smuggling of foreign rice and other banned items through the nation’s borders, the illegal trade still persists, thereby sabotaging government’s diversification drive and food security. As a result of the nation’s porous borders, government says it has designed new strategies in collaboration with security agencies in a new offensive against illegal importation of rice into the country.

To that effect, it has set up a Steering Committee of the National Taskforce on the illegal importation of rice through land borders. This is under the control of the Federal Ministry of Agriculture and Rural Development. The Committee has the mandate to track vessels that smuggle rice into the country through Benin Republic and companies that engage in such illegal business. The latest effort comes against recent revelation that the government spends $2 billion annually (about N1.12trillion) on the importation of wheat. Wheat importation is one of the key contributors to the nation’s huge foreign import bill. This is because millers in the country are forced to resort to importation to meet the huge demand for wheat by-products.

Similar to rice, wheat cultivation has the capacity to thrive in the country, especially in the North due to the weather condition. The latest effort to stop the smuggling of rice and importation of wheat will help to grow the nation’s economy and boost local production of the commodities. Also, the Comptroller-General of the Nigeria Customs Service, Col. Hameed Ali (retd), has enlisted the services of sister agencies to wage a war against the smuggling of rice. He had earlier explained that the agency cannot fight smuggling of rice alone at the borders. He needs other agencies such as the Nigerian Civil Defence Corps (NCDC) to beef up the joint operations of the Taskforce. No doubt, rice and wheat subsector should be sustained for the nation’s steady economic growth. Moreover, the agricultural sector is one sector that has made significant contribution to the Gross Domestic Product (GDP) in recent times. For instance, agriculture accounted for 22.35 per cent and 23.78 per cent in the Q1 and Q2 of 2021. However, the resumed smuggling of foreign rice constitutes a serious threat to the modest achievement made by the government to diversify the economy. Stopping cross border rice importation will enhance the growth of the domestic rice industry. Similarly, more investments in wheat production will drastically reduce the current importation of the product.  We believe that achieving self-sufficiency in rice and wheat production will ensure the nation’s food security. Therefore, the order to restrict sale of forex for wheat importation is commendable. In 2018, the Central Bank of Nigeria (CBN) restricted the sale of forex on over 40 items, including textile materials. The latest order is in furtherance of that objective to conserve external reserves and diversify the economy. We hope that it will not be sabotaged by unscrupulous Nigerians, including security agents. There is no doubt that the Nigerian market is huge enough to support businesses and goods for exports that will yield the much-needed revenues.

Nigerian market needs to be prioritised while security agencies work together to stop smuggling of rice and other items. With the threatening food insecurity due to the rising security challenges across the food-producing zones of the country, the restriction of forex on items that can be produced locally is understandable. Data from the Agricultural Promotion Policy and other global agencies show that Nigeria has a deficit across every thirteen major crops as well as 60 million poultry bird deficit.  

Also, according to the National Bureau of Statistics (NBS), trade in agricultural goods stood at N322.4billion or 3.9 per cent of the value of total trade in the first quarter of 2019. It is projected to reach an all-time low this year because of the pandemic and herders/farmers clashes in some states. 

Although Nigeria is reportedly short on essential items such as rice, maize, sugar and wheat, the CBN Anchor Borrowers Programme is closing the gap. However, there is need to give more incentives to local manufacturing companies. Considering its rising population, Nigeria should invest so much in agriculture to ensure food security. With enough arable land, nothing stops Nigeria from growing food enough for domestic consumption and for export.