FG loses N27b revenue to rice smuggling in three months

Local growers of rice and importers of the commodity have cried out for government’s help against smugglers, whom they allege have overrun the Nigeria Customs Service at the border entry points.
A new group of local growers and importers of the commodity, under the aegis of Patriotic Rice Association of Nigeria, said in Abuja on Monday that “massive and incessant smuggling of rice into Nigeria had thrown the rice industry into a turmoil with severe consequences for government revenues, the economy and future plans for rice self-sufficiency.”
In a statement jointly signed by Alhaji Habibu Maishinkafa, Chairman, and Martins Okereke, Secretary, PRAN said given the free reign enjoyed by rice smugglers, “a bleak future lies ahead of local rice growers and traders legitimately involved in rice trade.”
Tracing the origin of this sorry state of affairs in the country, the association said: “The Nigerian rice industry seems to have been thrown into a turmoil since the import tariffs were increased exponentially effective January 2013.
“Matters got complicated further with the reported inability of Nigerian Customs to control smuggling of rice across the country’s borders with Benin.”
In their view, the higher tariff and consequent high market prices have enthused smugglers to push large volumes of rice into Nigeria with zero duty, thereby unsettling the Federal Government’s efforts to make Nigeria self sufficient in rice production by 2015.
They decried the situation in which “large-scale investments made into the farming and milling industries by private businesses are also in jeopardy, following Customs’ inability to protect the industry from the vagaries of smugglers.”
PRAN quoted reports that suggest that more than 400,000 metric tonnes of rice from various origins have entered into Nigeria since January 2013, “dealing a major financial blow to legitimate importers and rice millers.”
They contended that needless to add, these illegal imports result in substantial loss of revenue for the government, which from January till date is estimated to be in the range of N27 billion by industry observers.
“The Nigerian rice consumers are in the process shortchanged,” they went on, “with inferior brands being smuggled and then re-bagged into quality brands and sold at higher prices.”
They further alleged that several vessels with cargoes totaling more than 220,000 metric tonnes from Indian and Thai origins have flooded the ports of Benin and Cameroun in order to eventually find their way to Nigeria through the borders.
Vessels from India, involving 90,000 metric tonnes to Benin, include MV Lord Curzon, MV Santa Barbara, MV Zeynupkiran, MV Emenates and MV Captain.
The statement added: “Vessels from Thailand with cargoes of more than 130,000 metric tonnes are shipped to Benin on vessels MV White Fin, MV Makra, MV Blanco Zealand and others.
“Several container loads totaling over 150,000 tonnes since the start of 2013 have also started penetrating through the borders through Benin, Niger Republic, borders with Northern Nigeria and in the East with Yaounde.
“More than eight million bags of rice have flooded all markets, including Alaba, Daleko, Ideo, Singer and other prominent nationwide markets.”
They also noted that smugglers have reportedly used sophisticated weapons attacking and killing customs staff, inflicting fears in the ranks across the borders.
PRAN said they were joining the prominent rice associations in the country to urge that the Nigerian Customs, notwithstanding assurances to the contrary, need to act swiftly and totally clamp down on such illegal imports to be able to contain any further damage.