In a bid to reduce the surge in the smuggling of rice through land borders, and also to facilitate the resuscitation of domestic industries, Nigeria’s Federal Government imposed a ban on rice importation four years ago. Smuggled imported rice was seen as a major threat to the development of Nigeria’s rice sector; while a 50kg bag of smuggled rice costs about N7000 then, which is about $35 now, locally produced rice costs way higher – about N12,000 ($60).
Two weeks ago, Colonel Hameed Ali, Comptroller-General of Customs, ordered the removal of rice from import restriction list, and also re-introduced import duties at land borders, stating that the decision to ban rice was not an effective measure as people have found other means of smuggling the product. According to Mr. Wale Adeniyi Public Relations Officer of customs, the new measures will enable the Nigerian Customs Service (NCS) “reorganise their anti-smuggling operations in the border areas and also ensure that all those importers through the borders bring their rice through approved routes and pay their extant duty.”
Following this announcement, the National Rice Millers Association of Nigeria, NRMAN, criticised Colonel Hameed Ali stating that he erred in his decision to lift the ban on importation of rice through the land borders. Mohammed Abubakar, Chairman of NRMAN said the NCS “overreached its statutory mandate as an enforcement agency in taking such a policy decision.”
Mr. Abubakar said, the success of the custom’s decision would destroy Nigeria’s rice value chain attained by the previous administration. “First of all, the customs does not have the power to do that, it is a matter of national policy and customs do not make national policy.” He further said that the decision was an attempt by the customs to legitimise the smuggling of rice, “Anyone who gives such directive has smuggling intentions.”
Mr. Abubakar promised that NRMAN would ensure the customs see patriotic reason and rescind the decision. And he very well may have done that as the Senate ad hoc Committee on Rice Waivers recently summoned Col. Ahmed Ali (rtd), to explain his decision to lift the ban on the importation of rice through the land borders.
In a motion moved by Senator Adamu Aliero, he reiterated the statement of Mr Abubakar, saying the Comptroller-General did not have the power to unilaterally lift the ban, adding that the action would undermine local production of rice by Nigerian farmers. Senate President, Bukola Saraki, was in agreement, he stated that as long as policies could suddenly be reversed ‘in this manner’, promoting local production would remain an illusion.
Prior to the implementation of the policy by the government in 2011, smugglers strove to evade the 20 percent customs levy, and therefore sold at a cheaper market price, or below market price, making business bad for genuine importers and local rice farmers. But the implementation of the ban created a level playing field for both local rice producers and genuine importers, thereby increasing the value chain of Nigeria’s number one staple food over the last few years.
