Government’s Rice Importation Policy Woes

• Ships Laden with Rice Diverts To Neighbouring Port
• Shipping Agencies Close Shop
• Customs Counts Losses, Battles Rising Smuggling
The Federal Government’s policy on rice importation which has shot duty to an all-time high of 110 percent is crippling businesses in Nigeria and boosting activities at the neighbouring Benin Republic’s Cotonou port.
Shipping Position Daily investigations revealed so many adverse effects of the policy, which government says is meant to boost local production of the staple food.
Investigations have revealed that no fewer than three shipping agencies that handle the commodities are on the verge of closing down there offices in Lagos.
Sources confirmed to our correspondent that some the shipping agencies that handle rice import have diverted their attention to importation of items like: crude palmolein, fertilizers, bulk malt and frozen fish.
One of our sources, a Chief Executive Officer in one of the leading shipping agency noted for handling rice imports said: "Since the government put in place the 110 per cent duty on imported rice, we have diverted our attention to other commodities and still we are running at a loss".
"Some of my compatriots are indirectly whispering to me that they want to close down their companies and as I speak, I have to reduce my workforce because I don't have money to pay salaries any longer”. "the policy is militating against our respective businesses and it is gradually getting to a stage where we have to call it quit"
The source also disclosed that three vessels laden with rice are still anchoring on the high sea for over a week, due  to the policy and that several others have sailed to a neighbouring port.
"Three vessels that are supposed to come into our ports are stocked at sea due to this same policy, they burn gas on a daily basis, they feed, and all these things cost a lot of money and report reaching me has it  that they have no option than to sail to neighbouring port of Cotonou for discharge".
Also last week, the Area Controller of Nigeria Customs Service (NSC), Apapa Command;
Mr Charles Edike confirmed that the hike in import duty on rice may impact negatively on realisation of Customs revenue target for 2013.
Edike said that the command might not meet its revenue target of N470 billion for the 2013 fiscal year.
Edike said that the command’s monthly collection of N39 billion was on a decline since the hike in duty on imported rice.
But, while Nigerians are lamenting, their counterparts in Benin Republic are smiling to the banks, owing to a deluge of rice-laden ships that have been berthing at Cotonou port.
The commodity is often smuggled into Nigeria, so says a senior customs officer, last week.
He confirmed that, there has been intense pressure on officers at Seme and Idiroko borders; two land borders between Nigeria and Benin Republic.
“Seizure of rice is an almost daily occurrence, but I can tell you that many still escape the eagle eyes of our men”, he stated, even as he attributed the fact that rice is still found in markets to the fact that there is no total ban on the item.
“It’s not impossible that the ones you see in the market are smuggled, but how do you determine the source, since there is no outright ban”, he explained.

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