Agriculture
Massive Smuggling Hits Rice Markets As Tariff Rises
With the kick-off of the new tariff regime on rice in the country this month, smuggling of the commodity into the country has assumed a frightening dimension, a Tide source gathered over the weekend.
The Agricultural Transformation Agenda of the Federal Government which led to the tariff in- crease was meant to help position locally produced rice to fairly compete In the market with imported ones and move the nation to self sufficiency in rice production.
According to The Tide’s investigation, thousands of bags of rice worth millions of Naira were being smuggled in to the country on a regular basis through waterways linking Nigeria with neigbouring Benin Republic and avoiding every legal duties and thwarting efforts to boost local production as well as sabotaging the business of genuine rice importers.
Nigeria’s local consumption of rice which stands at about 5.5 million tonnes annually and with locally processed rice standing at about 3.5 million tonnes per year, smugglers were taking advantage of the high tariff to make brisk profit through avoiding legitimate levies.
Vice President of Rice Importers and Distributors Association of Nigeria (RIDAN), Mr Boniface Nwodo while commenting on the development said the duty per tonne of rice imported into the country has increased from $227 dollars to $367 or about N58,000 currently adding that the increase was likely to trigger increased smuggling of rice.
According to him, smugglers have devised another means of bringing rice by canoes due to the ban on importation of rice through the nation’s land borders.
Recently, the Federal Government increased the duty on imported rice from 20 percent to 40 per cent but some stakeholders say a computation of this with other charges like ETLS of 0.5 per cent and FOB of one per cent brought the total duty and levies from 32.5 per cent to 50.5 per cent and that this has some impact on trade on rice.
Nwodo said the additional charges would likely encourage smuggling and advised government to monitor the unscrupulous import of rice through its water bodies to achieve its desired policy ideals.
RIDAN’s worries arose amidst reports that over 8,000 bags of rice were smuggled into the country daily and the calculation was that this runs into several millions of naira.
Recently, Minister of Agriculture Dr Akinwumi Adesina said the country would soon build the biggest rice farm in Africa in coordination with a United States bused company.
The project which is expected to gulp about $40 million will produces around 300,000 tonnes of rice and reduce rice imports by 15 per cent and result in import savings to around N54 billion about $342 million every year.
The Federal Government has said that the country has all it take to become an exporter of rice given its huge human and natural resources but arguments are that there was need to ensure availability of the product first given that it is a major staple for millions of Nigerians.
According to the president, the target was for Nigeria which is a top rice importer to produce 2.1 million tones of rice within the next four years as part of the nation’s aim to become rice-sufficient and shift its economy from being oil-centric to agriculture-centric.
Federal Government and the Ogun State Government, on Wednesday, distributed farm inputs to farmers as part of effort to address food security challenge.
The State Director, Federal Ministry of Agriculture and Food Security, Dr. Toyin Ayo-Ajayi, during the flag-off ceremony of Inputs Redemption Under The National Agricultural Growth Scheme-Agro Pocket (NAGS-AP), in Ogun State, disclosed that beneficiaries of the gesture were primarily rice, maize and cassava farmers across the State.
Ayo-Ajayi commended the Ogun State Government for partnering with the government at the centre for the effort in supporting farmers with inputs that would bring about yieldings for local consumption and likely exportation.
She noted that government is supporting rice, cassava and maize farmers with inputs worth N212,000; N189,000 and N186,000 respectively.
The Permanent Secretary in the State Ministry of Agriculture, Mrs Kehinde Jokotoye, who represented the Commissioner in the Ministry, Bolu Owotomo, stated that traditional farmers are critical in food production, hence the need to encourage and support them with inputs that would bring about desired results during harvesting.
Owotomo said: “Let us make good use of this opportunity, so that the success of this phase will make farmers benefit more from the state and federal governments of Nigeria.”
Earlier, State Coordinator, Federal Ministry of Agriculture and Food Security, Dr. Oluwatoyin Ayo-Ajayi, appreciated the present administration for partnering with the federal government for the initiative, adding that the programme is designed to support farmers at the grassroots level in cassava, rice and maize with inputs such as, seeds, pesticides, herbicides and fertilizers, to boost their production and enhance their livelihood.
The Niger State Government has mapped out 10,000 hectares of farmland in Gbapo Community of Katcha Local Government Area of the State for smallholder farmers to benefit from the state government’s agricultural intervention programme.
Two thousand out of the 10,000 holders of the farmlands have already received inputs.
At a flag-off ceremony in Yinti Village, the facilitator of the programme, Shinkafan Nupe, Malam Idris Usman Makanta, assured the farmers of increased distributions to the mapped-out ten thousand (10,000) farmlands if farmers respond positively.
He explained that the commencement of the two thousand is to measure the positive response of farmers before obtaining full-scale support.
Malam Makanta stated that this initiative aligns with the farmers’ initial commitment through Niger Foods, whose mission is primarily geared towards establishing efficient and profitable agricultural businesses to support the present administration of Governor Mohammed Umaru Bago’s quest to boost agricultural productivity in the state.
He also commended Niger Foods for their steadfastness and resilience in the effective implementation of the input financing scheme.
Makanta reiterated the commitment of the State Governor in making judicious use of the arable land in the state.
Shinkafan Nupe, therefore, urged the farmers to support the Governor by using the inputs wisely so that the dream can be actualised.
The Gombe State Government has empowered a total of 573,429 farmers and entrepreneurs under the 4th phase of the GO-CARES programme.
The programme was officially flagged off by Governor Inuwa Yahaya in another major step towards alleviating poverty and supporting the state’s vulnerable populations.
The Governor, while inaugurating the disbursement in Akko Community of Akko Local Government Area, restated his administration’s commitment to the welfare of vulnerable citizens in the state.
He was represented by the Commissioner for Budget and Economic Planning, Salihu Baba Alkali, who is also the Chairman of the Steering Committee on GO- CARES implementation.
“The 4th phase of GO-CARES will directly and indirectly impact a total of 573,429 citizens across the state. Of these, 152,429 individuals will benefit directly through cash transfers, livelihood grants, agricultural inputs, and operational grants to small businesses”, he stated.
The Governor added that, “421,000 people will be indirect beneficiaries through infrastructural projects such as classroom blocks, healthcare facilities, WASH services, and rural infrastructure projects like culverts and drainages”.
Yahaya, reaffirmed his commitment to ensuring that the state’s most vulnerable citizens are not left behind in the state’s development.
According to him, “Earlier this year, on June 25, 2024, we flagged off the distribution of improved seedlings, fertilizers, and herbicides to less privileged farmers in Malam Sidi, Kwami Local Government Area, signaling the commencement of the 4th phase implementation of GO-CARES under Result Area 2”.
The Governor reiterated that these initiatives have had a significant impact on the livelihoods of beneficiaries and the overall agricultural sector.
He explained that, “Today’s ceremony marked the simultaneous launch of activities under all three GO-CARES Result Areas for the 4th phase. These areas include: State Cash Transfer Grants: 2,500 direct beneficiaries; Labour Intensive Public Works: 2,700 direct beneficiaries; Livelihood Grants: 10,000 direct beneficiaries; and Basic Services: 405,000 indirect beneficiaries”.
