Nigerian Senate Wants Ban on Rice Imports Sustained

Fri, Dec 4, 2015
By publisher
4 MIN READ

BREAKING NEWS, Business

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The Nigerian Senate wants the Nigeria Customs Service to suspend the lifting of ban on rice importation into to the country through land borders to encourage local rice production

By Anayo Ezugwu  |  Dec 14, 2015 @ 01:00 GMT  |

FOLLOWING the lifting of ban on importation of rice through the land borders by Nigeria Customs Service, NCS, the Senate has asked President Muhammadu Buhari to direct customs to suspend the lifting of ban on the importation rice. On Wednesday, December 2, Adamu Aliero, chairman, Senate ad-hoc committee on‎ import duty waivers, concessions and grants, submitted its report after a probe of the policy. The committee recommended that the upper legislative chamber ask the federal government to suspend the action of NCS on the grounds that it would disrupt the rice policy aimed at encouraging local production of the staple food in the country.

Bukola Saraki, Senate president, said, “I don’t think we should look at this issue from any sentiment, but from logic. My view is that I don’t think anybody is convinced why anybody will go through the borders to incur extra cost‎ unless there is an intention to defraud government. I think as of now this process of going through the land borders does not do that. We must support our local farmers. We strongly advise the customs to suspend the lifting of the ban on importation of rice through the land borders and continue to operate through the sea borders.”

The Senate position aligns with that of the National Rice Millers Association of Nigeria, NRMAN, who criticised the Customs decision to lift the ban. Mohammed Abubakar, chairman of the association, said that the NCS overreached its statutory mandate as an enforcement agency in taking such a policy decision.

Abubakar said if the customs succeeded in its decision, it would destroy Nigeria’s rice value chain attained by the previous administration. He said the decision was an attempt by the customs to legitimise the smuggling of rice.

“First of all, the customs does not have the power to do that, it is a matter of national policy and customs does not make national policy, it is an implementation agency. 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.

Abubakar said the association would do everything possible to make customs to see patriotic reason and rescind the decision. He urged government to be focused and have the political will to make sure Nigeria becomes self sufficient in rice production.

Hameed Ali, comptroller-general of customs, had announced in October said that the federal government‎ was lifting the ban on rice importation through the land borders to shore up revenue and to forestall smuggling of the commodity into the country. Wale Adeniyi, public relations officer of Customs, who made the announcement, said the restriction was only applied at land border stations before now, adding that the customs boss had lifted restriction on rice at border stations.

He said all rice imports through land borders by rice traders would attract the prevailing import duty of 10 percent, with 60 percent levy.  He added that rice millers (preferential levy) with valid quota allocation would also attract duty rate of 10 percent with 20 percent levy on rice importation.

“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 the 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 recognise 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.”

Before the ban on rice importation, Customs had placed different rates of levy on rice imports 30 percent levy was placed on rice millers (preferential levy) and 70 percent for rice importers. The purpose was to encourage local production.

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