Everywhere you turn, you are greeted with stacks and stacks of bags of rice, from Sango to Daleko, from Igbo-Elerin to Mile-2. However, these bags of rice are smuggled into the country through our porous borders while the Nigeria Customs Service, NCS, seems to look the other way.
Recently, there were reports that over 20 million bags of rice were being smuggled into the country on a daily basis. Also, the Rice Processors Association of Nigeria, RIPAN, has raised an alarm that over 20 million bags of rice had been smuggled into the country in the first quarter of 2019 alone. Babajide Okeowo, in this report, takes a look at this menace and how to curb it.
A few days ago, members RIPAN paid the Acting Chairman of the Economic and Financial Crimes Commission, EFCC, Ibrahim Magu, a visit to seek the assistance of the graft-fighting body on the menace of smugglers. The Vice Chairman of the body, Paul Eluhaiwe, said the smugglers had forced some of them to close down their local production plants.
In his words, many of them who used to produce 10 trucks were now producing only two trucks, as a result of the smugglers.
“In the current situation in which we have found ourselves, we have to cut down on our staff, close part of our operations and manage to keep afloat since the smugglers have continued to ship in expired and unhealthy rice into the country through land borders across the country.
“We have come to EFCC to discuss with them on the dangers of rice smuggling into Nigeria via many routes in the federation. It has been happening and it is getting worse that we can no longer sell our rice since January this year. It has gotten to a point that all Nigerians must stand up to do something about the uncontrolled smuggling of rice into the country, a dangerous trend that is directly killing the local rice production plants and farmers,” he lamented.
At the meeting, Magu regretted that the country is losing huge revenues, foreign exchange and jobs, as local rice processing companies are shutting down because of the inability to access the market.
The above lamentation sums up the threat smugglers pose to local production of rice in the country.
READ ALSO:Sri Lankan Catholics pray, weep outside church in guarded vigil
Smugglers devise ingenuous way of smuggling
According to investigations by The Nigerian Xpress, rice smugglers have now devised ingenuous way of smuggling, using Nigeria’s porous land borders. Millions of bags of smuggled rice make their way into the country weekly, especially from the Republic of Benin via Seme and Idiroko borders. Instead of using trucks or lorries to bring in the commodity, the smugglers have since devised the means of using motor bikes, popularly called Okada, to convey the bags of rice from Cotonou end into Nigeria. In one viral video on Social Media, one Okada is seen, loading about 10 bags of rice at once and can make 10 or more trips daily. Once the bags are inside the country, there are already buyers, waiting to take deliveries and so in this process, Nigeria is daily flooded with smuggled rice.
Local rice production threatened by smuggling -Stakeholder
According to RIPAN’s Chairman, Mohammed Abubakar Maifata, the gains so far recorded in the rice production revolution in the country, particularly the intervention of the Central Bank of Nigeria (CBN) through the Anchor Borrower Programme (ABP), could be jeopardised by the activities of smugglers if not confronted head-on by government. He further raised the fear that investors in Nigeria, who have made an enormous financial commitment in the rice sub-sector are constantly threatened by the activities of smugglers, which is a threat to the industry’s total development.
“Investigations conducted by the association in the last few months indicated that all our international borders have been converted to smugglers’ routes and our markets are filled with smuggled foreign rice,” he lamented.
Government must resort to diplomatic action – RIPAN
Speaking on the way forward, Abubakar said the government must as a matter of urgent national importance take strong diplomatic action against its neighbouring countries, which allow parboiled rice into their country enroute to Nigeria, adding that the government should consider closing the borders in the meantime should diplomatic overtures fail.
“Government should as a matter of urgency take strong diplomatic action against our neighbouring countries, which aid and abet the smuggling of parboiled rice into their countries before making their way into Nigeria. The government must also note that some officers, working in government agencies are in collaboration with these smugglers. These officers must be fished out and punished by the EFCC, for economic sabotage,” he said.
Professor Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago Iwoye, Ogun State, said there were several issues that should be addressed before the issue of smuggling could be curbed.
“First, the demand for rice continues to outstrip supply. The quantity produced for now is very small relative to the amount being consumed. Also, the distribution channels for domestic rice are not efficient for the rice to reach the desired destination in time. More importantly, the taste buds of Nigerians have been accustomed to imported rice and the demand for such remains high while the borders remain porous; thus assisting in easy passage of imported rice,” he said.
Speaking further, Tella noted that the price of the smuggled rice is comparatively low when compared to the locally produced rice.
“In addition, the cost of smuggled rice is low, perhaps, because of the subsidy provided by the governments of the rice-producing countries. This has also translated to the low selling price in Nigeria when compared to how much locally-produced rice is sold. All these contribute to increasing local demand for imported rice. The government should concentrate on helping local farmers to produce quality rice at a cheaper rate through further mechanisation, subsidy in terms of inputs, seedlings and distribution so that the costs are lowered for affordability and availability in markets across the country,” he said.
Make local rice price at par or cheaper than smuggled rice -Stakeholder
According to Alhaji Rislanudeen Mohammed, Managing Director, Safmur Investments Limited, the only way to snuff out life from smuggling is to ensure that locally produced rice can compete evenly in terms of pricing and quality.
“Smuggling will automatically be wiped out by the market if locally produced rice can compete evenly in terms of pricing and quality. For that to happen, the private sector needs to be supported and encouraged to invest in mechanised, cost-effective means of processing locally-produced rice to ensure optimality in quality as well as price competitiveness. The private sector needs to be supported with special intervention funds that are of single digit interest rate and long term repayment tenure, as well as easy access to land and infrastructure support for mechanised farming,” he said.
READ ALSO:Imo people should expect good governance from PDP – Ezekwem
Nigerians divided over smuggling issues
However, Nigerians from different walks of life are divided over the issues of smuggling of rice.
According to Frank Bassey, we should stop deceiving ourselves if there is no smuggling of rice, we would be the worst affected, rather, we should try to phase it out gradually.
“Let’s not deceive ourselves. If there were zero smugglings of rice, we would be the worst affected by food shortage. Locally made rice cannot feed the whole country. Instead of the Federal Government, to gradually phase out importation of rice in phases, it decides to shut down the whole thing. Who does that when you are not currently producing enough rice to feed the whole country? he asked.
On his part, Izedomi Ohirein raised the alarm that most of the rice imported into the country are expired rice bought cheaply by smugglers.
“The problem is that most of the imported rice is expired rice bought cheaply by smugglers. However, Nigerians are beginning to appreciate the need to eat locally-grown rice, which is, in fact, healthier and more nutritious. That consciousness is beginning to build up. People are now consciously going to the market to look for Nigerian rice with pride. That has also increased the pride of Nigerian consumers unlike before where a lot of emphasis is placed on imported rice,” Ohirein said.
