Guardian

FOR the Federal Government’s policies and initiatives aimed at making the nation to become self-sufficient in rice production through local cultivation and the plan for the country to become a food exporting nation in 2020 would not remain a mirage, addressing smuggling activities at the nation’s borders, especially the land borders must remain a priority for stakeholders.

With rice presently becoming the most consumed staple in the country, the impact of a negative development on the sector is felt in most homes, even as the flow of the product into the nation’s market has remained unhindered.

However, following the negative impact which unbridled smuggling of goods, especially rice has on the economy of the country, stakeholders have again, called for rigorous border checks as importers seek ban on land border imports.

Already, the floods in the latter part of 2012 had deteriorated the existing situation as many farms were ravaged, resulting in a dearth of the product. With a yearly rice importation bill of about N360 billion, stakeholders have raised concern on the need for the federal government to cut down dependence on the importation of the essential commodity.

Apparently squeezed to the hilt in terms of marketing, local rice millers and importers, under the aegis of Rice Importers, Millers and Distributors Association of Nigeria (RIMIDAN), recently, decided to enlist the federal government in a last-ditch effort to avoid extirpation.

Specifically, the association through its National Chairman, Tunji Owoeye sought government‘s intervention, through the banning of rice importation into Nigeria through land borders. It contested that since land borders have become the main avenue for smugglers to flood the Nigerian market with rice, without regard for other concerns of the economy and the government, what was done in the case of frozen foods would be appropriate and effective in curbing the economic malaise.

According to stakeholders, the fact that none of Nigeria’s neighbours is a rice producing nation, it calls for questioning on why any importer would prefer to import parboiled rice first to Contonu before bringing it into Nigeria, with its attendant cost of double duty and tariff, if there is no hidden Agenda.

RIMIDAN noted that the backward integration policy being introduced in the rice sector is similar to what was done in the case of cement, a development which has transformed Nigeria from a country that was dependent on other nations for its cement supply, to one that does not only produce all the cement it needs but also contemplates exporting the excess soon.

The association, which recently donated about N50 million worth of rice to the victims of the recent flood in the country, stressed that apart from the threats which some businessmen who are lobbying government to grant them import duty waivers for rice importation to the detriment of duty paying genuine rice importers, rice smuggling through the porous borders of the country also puts the rice backward integration policy in grave danger.

“As members of RIMIDAN, our members do not just import the entire 5.5 million tonnes of rice needed to feed Nigerians every year but also cultivate and produce about 1.8 million tonnes of the total quantity needed, leaving the supply gap of about  3.7 million tonnes to be bridged by importation.

“Local rice production in Nigeria today is about 1.8 million metric tonnes and RiMIDAN contributes about 79 to 84 per cent of this. Total number of people employed in the value chain is about 4.5 million. This figure excludes almost 2.7 million jobs created in areas of logistics, handling and sundry services in other sub-sectors of the industry. Investments in Plants, Machinery and Equipment by RiMIDAN, as of mid 2012, are in the region of 150 billion.

“Rice occupies an important place being the staple food of Nigerians. According to government statistics, yearly consumption of rice is about 5.5 million tonnes with local production accounting for about 1.8 million tonnes, thus necessitating the need for importation to bridge the gap. Unfortunately, 50 per cent of these imports are smuggled into the country”, the association added.

According to available statistics, the total loss of revenue to the government from this unwholesome activity for the period commencing January 2012 till date is over $200 million, or N32 billion naira.

“What the smugglers are riding on is the increase in levy on imported rice and also the porous land borders. Thus there is a situation whereby thousands of bags of rice are being smuggled into the country on a regular basis especially through the rivers linking Nigeria with the Republic of Benin, while genuine processors are left in a lurch.

“The association’s call is for the federal government to strengthen its mechanisms for policing the land borders especially the Seme Border flank as well as other related areas, where much of these acts are being perpetrated.  RiMDAN’s objective in this respect is to protect the rice business in Nigeria and ensure that the sub-sector plays its role of sustaining its due Gross Domestic Product (GDP) contribution to the national economy,” Owoeye added.

Meanwhile, the Senate has expressed commitment to checkmate activities of smugglers in the country in order to prevent a situation whereby genuine millers would be making huge investments in the economy, generating employment and supporting the country’s economic growth only for the smugglers to jeopardize it.

Senate President, David Mark while receiving members of the association in Abuja, recently, said RiMIDAN actually deserves the support of the relevant agencies of the Federal Government in its efforts to ensure food availability and that one way of doing this is to stop the smugglers who are spoiling business for the genuine millers.

The action of smugglers, he said, is also harming the policies of the federal government as it regards food availability and job creation.

He said the Senate would as part of its contributions and in the carriage of its functions, collaborate with relevant agencies of government to ensure that the smugglers are stopped from ruining the rice business and by extension the economy.

The Senate’s promise is coming amidst increasing concerns by the RiMIDAN over the activities of the smugglers.

Owoeye,  said though they had complained repeatedly in the past, but that the problem had persisted.

He added: “the truth is that the unscrupulous elements behind this unwholesome business are not only unrelenting, but are daily intensifying and refining their activities thereby undermining government’s policies and programmes directed at boosting local food production. It is disheartening to note that these persons connive with some bad elements in our security services to perpetuate their illicit acts. As an association and also as stakeholders in the Nigerian economy, this is of great concern to us”.

While acknowledging the federal government’s initiatives in boosting agriculture, which has also encouraged a lot of genuine investors to invest in the sector, Owoeye expressed the association’s worry that much of such investments appear threatened by the activities of the smugglers.

He said what smugglers are capitalising on is the porous land borders especially the flank linking the country with Benin Republic, adding that RIMIDAN was ready to partner the Federal Government to ensure that the availability of rice at reasonable prices in the country.

Meanwhile, a few months after flood devastated Nassarawa State, destroying houses, farmlands and ponds, Olam Nigeria limited says it has successfully replanted her integrated rice farm, which was also affected by the floods.

Eager to continue to fulfill her obligations to meeting Nigeria’s rice needs, Olam Nigeria Limited began replanting exercise and has completed it noting that the feat places the company in a comfortable position to continue to play her strategic part in Nigeria food security programme.

General Manager, Sales, Olam Nigeria, Anil Nair, said although the incident was regrettable as it caused huge losses and panic in the people, it would not deter the company from its commitment in the food chain and also the development of the Nigerian economy.

He said Olam has invested strategically in the Nigerian agriculture sector, and would continue to do so in the future, as a way of underscoring its belief in the potential of the economy and faith in the Nigerian people.

The company’s Nigeria Rice Team had sold a total 324,000 MT of rice (all brands) by the middle of year 2012, a figure that had progressively increased some five months later.

In the Premium rice segment, it, for the first time crossed a benchmark of 50,000 MT Premium rice sale, to stand at about 53,800 MT of Premium Rice sale mid year, a figure the company expects to have surpassed by the end of the 2012 fiscal year.