Massive smuggling of Nigerian rice to Mali, Niger stifles self-sufficiency

Abiola Seun |

Massive smuggling of locally produced rice out of the country has been identified as one of the factors hindering Nigeria self-sufficiency.

Recall that Nigeria currently has a yearly shortfall of 1.3metric tonnes because the country produced 5.7million metric tonnes of rice against national consumption estimated at 7.00million metric tonnes.

In a chat with journalists recently, the Commissioner for Budget and Economic Planning Kebbi State, Hon. Zailani Mohammed, said rice is being smuggled in large quantities out of the country to Niger Republic, Mali and other African countries for greater profit.

He said, “Actually, a lot of rice produced in Nigeria is smuggled out to neighbouring countries of Mali, Niger Republic and the rest. A lot of rice is smuggled out and if we close the borders, it will bring down the cost of rice to stop the illegal smuggling.”

When asked those behind the smuggling, the commissioner said, “They are being smuggled by individuals and private sectors because they are looking for a better market and we can’t curtail them but all we can do is to tell the farmers to produce more because if we give farmer a price and they can get a better one outside and with the fallen rate in our naira exchange value, it sells more profitable to export or to illegally smuggle it out to Niger Republic so if we produce more the price will come down.”

Nigeria is ranked the highest producer of rice in West Africa and at the same time ranked as second highest importer of rice in the world by 2014, incurring an average import bill of N1billion on rice import but the interventions of the federal government and state government have increased yield of rice thereby reducing Nigeria rice import bill.

Also, Zailani further acknowledged the interventions of the federal government and state government saying Nigeria will achieve rice sufficiency with more investments in infrastructure and technology.

“The intervention of the federal government has helped so much to increase the yield by hectare for instance, in Kebbi we have moved from 3.5MT/hectares to 5.5MT/hectares in 2018 and that is going across many rice producing states in addition to the intervention of the Central Bank of Nigeria (CBN).

He also stated the need for government to support Nigerian rice farmers with technology and infrastructure in order to compete with Asian rice farmers who dumped their end products on Nigeria economy.

“Foreign farmers have better advantage than Nigerian farmers because they are supported effectively by their respective government more or less dumping on Nigeria economy but if the two prices are compared, the rice produced locally is fresher but foreign rice is on the high-sea for many months and by the time you take it, the flavours is gone but that of local rice is healthier and enhance local capacity of local farmers.”

“Government should also invest massively in agriculture to bring down the cost because Nigeria farmers are facing lot of challenges which included lacking in technology, support of infrastructure and that challenge is contending with local farmers to produce.”

“The foreign farmers are supported by government with technology and facilities to produce more and this will be at a lower cost than Nigerian farmers. This is the challenge and every economy will go through this process.”

The Rice Millers and Distribution Association of Nigeria (RIMIDAN), called on the Federal government to increase its investment in the production and cultivation of rice to make Nigeria self-sufficient.

This was even as the president of the association, Tunji Owoeye acknowledged the federal government investment in rice so far.

“There are serious investments for us to meet self-sufficient from both private sector and government. Government is investing heavily on production, enabling environment, encouraging farmers. The private sector is also investing heavily even on the valuation. The investment has surpassed what we have in the last 100 years.”

Speaking on government proposal to shut the border to smuggling, Owoeye said that shutting the border will assist to stop rice smuggling into the country.

He however warned that shutting the border may not be the same solution to the menace of smuggling but equipping the Nigeria Customs Service with state of the art technology to fight smuggling at the borders.

“It may not stop smuggling completely but it will help to fine-tune the strategies used. Shutting the border will help them to rejig strategies on how to go harder on rice smugglers.

“It will also send strong signals to the neighbouring countries that are hiding the people that there is consequence and Nigeria is ready to protect its investment in rice production but it’s not the lasting solution.”