Smuggling as threat to investment in rice sub-sector

A quiet agitation in the rice sub-sector of the Nigerian economy is gradually turning into an open groaning. LAYI ADELOYE writes on the concerns of stakeholders for the nation’s economy, as smuggling becomes more brazen Although Nigerians consume about 5.5 million tonnes of rice annually, the country only produces about 3.5 million tonnes, according to statistics obtained from the International Rice Centre. The shortfall is much, which has warranted unavoidable importation of the commodity over years. But dubious businessmen have continued to capitalise on the supply gap to frustrate genuine efforts aimed at boosting local production. Stakeholders believe that if the flanks through which the product is smuggled are closed, it would be a big incentive for the local farmers to produce more, and subsequently meet local demand for rice. On the other hand, the situation would bring more revenue to the coffers of the Federal Government in terms of duties paid by genuine importers, who would import to bridge the demand gap. But smuggling has remained the bane of the industry, according to recent declarations by importers, distributors, farmers and other stakeholders in the rice value chain in Nigeria.

In Nigeria, in addition to its value addition to the economy, rice business is said to be offering direct employment to not less than four million people nationwide. However, if the current situation in the sub-sector is anything to go by, these jobs face a huge threat. Investigations show that the threat is posed by smugglers, who have been capitalising on porous Nigerian borders to flood the country with rice, while genuine importers are paying as much as 50 per cent duty. The stakeholders in the rice value chain, under the aegis of Rice Millers, Importers and Distributors Association of Nigeria, recently alerted the Federal Government to the colossal losses in accruable revenue the country had been suffering as a result of the activities of rice smugglers. continued