Local rice industry may collapse due to smuggling of foreign rice

A vendor arranges bags of rice at the Wuse market in Abuja, Nigeria May 15, 2018. REUTERS/Afolabi Sotunde – RC1B6E918430

Local rice industry may collapse due to smuggling of foreign rice

Noah Ebije, Kaduna

The Federal Government has been advised to thoroughly suppress the smuggling foreign rice into the country in order to prevent the collapse of the domestic rice industry.

The Social Integrity Network, (SINET) in a statement signed at the weekend by its National Coordinator, Mallam Ibrahim Issah, noted that while the country is reaping the benefits of land border closure measure in terms of revenue generation and reduction of insurgency, there are calls to reverse the policy for dubious interest.

Issah said it is unfortunate that with the huge efforts made by local rice farmers and millers towards ensuring that Nigeria is self-sufficient in rice production, foreign rice is still in commercial circulation across the country.

Issah called for the maintenance of the border closure policy in order that local manufacturers remain in business.

He noted that some of the manufacturers have commenced operations, providing more jobs for Nigerians, while the Central Bank of Nigeria (CBN) has invested heavily in local manufacturing through loans.

“Unfortunately, with the huge efforts made by rice farmers as well as rice millers towards ensuring that the nation remains self-sufficient in the rice production, it is surprising to note that foreign rice is already getting the ways back into the country.

“We still need to extend the border closure policy because our fear is that if the smuggling of foreign rice is left unchecked, many rice mills will soon collapse while investors would be declared bankrupt, thereby opening another episode of financial distress on banks that have provided them with loan facilities for business operations and expansion.

“SINET was shocked and disappointed with a news report credited to the Director-General of the Manufacturers Association of Nigeria, (MAN), Mr Segun Ajayi-Kadiri, describing the border closure policy as unsustainable, even though, he understands that influx of foreign-made products will definitely affect local manufacturers.

“It is pertinent to note that with the border closure, many industries have commenced operations thereby providing more jobs for Nigerians while the Central Bank of Nigeria, (CBN) has invested heavily on local manufacturers by providing them with loans.

“The effect of such unwholesome moves by some cartel will have a negative impact on the nation’s economic drive, even when the Nigeria Customs Service and the Central Bank of Nigeria recently rolled out the numerous economic gains of border closure while the influx of arms and ammunitions has reduced drastically,” the SINET statement read.

The group advised the Federal Government to engage the Nigeria Security and Civil Defense Corps, (NSCDC) in the taskforce operation of checking warehouses found with foreign rice and impose stringent sanctions on culprits in the collective interest of Nigerians.

SINET commended the Federal Government for adopting policies capable of reviving Nigeria’s economic fortunes amidst numerous global challenges, stressing that “government’s decision on Treasury Bill in the recent times has clearly shown that the era of looting Tax Payers’ money is over in the country.”

The group raised concerns over attempts by some groups to mount undue pressure on the President to re-open the Nigerian borders, saying it does not reflect the overall interest of Nigerians, claiming that the pressure campaign is being sponsored by economic saboteurs.

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