PRESIENT BUHARI AND THE NEW RICE POLITICS IN NIGERIA
According to Adeniyi all rice imports through land borders by rice traders would attract the prevailing import duty of 10 per cent with 60 per cent levy while rice millers (preferential levy) with valid quota allocation would also attract duty rate of 10 per cent with 20 per cent levy on rice importation.
He said: “Over the years, importation has been restricted to the seaports because border authorities have found it difficult to effectively monitor and control importation of rice. When the decision to ban it (rice) was taken it was not an effective measure because smuggling of the product thrives with people using different means of conveyance including small trucks, bicycles and even animals – putting them on donkeys and some actually carry it on their heads.
“These new measures will be for customs to reorganise their anti-smuggling operations in the border areas and ensure that all those importers through the borders bring their rice through approved routes and pay their extant duty.”
But, this rationale is in all fairness and modesty untenable because the NCS does not need to lift ban on anything to close ranks on the smuggling of such thing. This is analogous to attempting to lift ban of gun running or drug pushing in order to close ranks on the dealers. In fact, the decision itself is in effect an attempt by the customs to legitimize the smuggling of rice into Nigeria.
The second though most important problem with this action of the CG is that it is Ultra Vires the powers of the Nigeria Customs Service. The NCS has appallingly over reached its statutory mandate as an enforcement agency in taking such a policy decision. The customs do not have the power to do that, it is a matter of national policy and customs do not make national policy, it is an implementation agency. But, the Soldier Man CG is apparently ignorant of this.
Thirdly, is what could conveniently qualify as economic sabotage being that the success of Col. Hameed Alli (rtd) with this decision would destroy Nigeria’s rice value chain attained by the previous administration. Thus, instead of working hard for Nigeria to become self sufficient in rice production this policy would do well in achieving a diametrically antithesis of it for us. One would recall that the restriction policy on rice importation during the past administration had also placed different rate of levy on rice imports to the effect that 30 per cent levy was placed on rice millers (preferential levy) and 70 per cent for rice importers. The essence of the different rates of levy vis รข vis the entire restriction policy was ultimately to encourage local production which in effect moderated the price of rice in markets across the nation. This explains why the past administration had the most stable and most consumer friendly market price of rice in the history of rice consumption in Nigeria.
Accordingly, experts and statesmen have before now always stressed the need for the government to provide an environment that is conducive to efforts to improve rice production in the country. Dr Samuel Agboire, as the Head of the Research Support Services Department of NCRI, while underscoring the need for all stake holders to play their roles effectively to enable the country’s farmers to utilize the numerous research findings by his institution observed earlier this year that ``For example, if the government comes up with a policy that favours importation, farmers would be discouraged because imported produce may be cheaper than the locally produced ones."
Interestingly, while the lift of ban on rice importation is detrimental to rice production in Nigeria the upward taxation review would on the other hand defy the second part of his hypothesis by actually increasing the cost of rice in the market which is detrimental to the common citizenry.
It is in this light that the National Rice Millers Association of Nigeria, NRMAN, through their Chairman, Mohammed Abubakar challenged and criticized the CG's action on Thursday 8th of October 2015 in Abuja while addressing NAN. Mohammed Abubakar who is the Chief Executive Officer of Umza Rice stated categorically on behalf of the association that the Nigeria Customs Service, erred in its decision to lift the ban on importation of rice through the land borders. "This will completely kill the rice value chain and everything concerning rice production will stop; customs does not have the right to make such decision.
“This ban was placed six years ago and everybody knows that, so it does not have any reason to say rice should be brought in through the land borders.
“Anyone who gives such directive has smuggling intentions,” he said.
Mr. Abubakar still addressing NAN said the association would do everything possible to make customs to see patriotic reason and rescind the decision.
However, since the executive arm of the Federation is yet to pick steam it is only the National Assembly that can call the CG to order pronto. But then, if obvious issues like the appropriateness and otherwise of questionable nominees for ministerial positions can be clogged with irrational partisanship one begins to wonder how the common man would find his way to the chambers to save his everyday meal.
Be that as it may, If the CG is scared that rice smugglers are winning the war against him and our economy all he ought to have done would have been to present an elaborate situation report and recommendations to the Government to solve the problem while he doubles effort to tighten our border security because if our borders are porous to rice smugglers then it would not be termed non sequitur to posit that it is equally porous to many other things as well.
Hence, it is my humble suggestion the Federal Government should review the trade liberalization scheme and close the borders to smuggled goods to aid efforts to improve the production of local rice in the country.
Beyond this, Mallam Sanusi Lamido Sanusi, then CBN Governor, had urged the government to invest funds, which were set aside for rice importation annually, in massive rice production and so did his successor Emefiele.
More so, Nigeria's policy on rice production has been an ongoing project that has been improving by the year right from the President Olusegun Obasanjo's regime through Late President Umaru Yar'aua's and leaped quantumly in the immediate past administration of President Goodluck Jonathan. The handing over notes from President Jonathan to President Muhammadu Buhari could not have "treasonably" omitted this. Maybe this alone shows how our economy is being undermined by the absence and late appointment of ministers because this is one policy that various Ministers of Agriculture in recent past have pursued zealously. In fact, it was the target of the Federal Government to achieve a total and final ban of rice importation by the end of 2015 following the many capital resources actively invested into the sector through dry season rice farming, transportation subsidies, provision of fertilizers and improvement and multiplication of varieties to mention a few for the ultimate purpose of self sufficiency in rice production. And just this August, Gov. Tambuwal being the immediate past Speaker of the Lower legislative chamber urged Nigerian government to end rice import waiver, harness and streamline all its policies aimed at boosting local rice production and stemming rice importation.
With all of these many important and ordinary voices promoting local production and import restrictions of rice versus the seeming cluelessly Ultra Vires action of the Soldier Man led Nigeria Customs Service appointed by the septuagenarian Soldier Man President one begins to wonder if this government albeit wittingly or otherwise is taking us forward or backward.
Okpo Ewa E
Lawyer, Arbitrator & Literati.
Humanity Chambers,
Nigeria.
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