How Nigeria’s economy was hampered by over N145bn smuggled rice in 8 months

Motolani Oseni

Despite efforts by the Federal Government, the Central Bank of Nigeria (CBN) and other industry stakeholders, over one million metric tons of rice valued at $400 million (N145 billion) was smuggled into Nigeria since the beginning of 2019.

For instance, Rice Farmers Association of Nigeria (RIFAN) on Thursday commended the action being coordinated by military and paramilitary at the nation’s land borders.

National Chairman of RIFAN, Mr Mohammed Abubakar, yesterday accused neighbouring countries and some multinational companies of conniving to sabotage food security and economic prospects of Nigeria.

According to the proprietor of Umza International Farms, there was an additional 500, 000 tons of rice already ordered through the Benin Republic by smugglers for the Christmas season.

Abubakar explained that RIFAN has a surveillance team that monitors activities at the Cotonou port.

He lamented that since the Federal Government restricted the importation of rice, import of the commodity from the Benin Republic had drastically increased.

“Only Nigerians eat parboiled in West Africa as others including Benennois eats white rice.

“And so, any parboiled rice imported into the Benin Republic is only on transit to Nigeria,” he explained.

Abubakar who was accompanied by other members of the association expressed the delight of members that mills that were producing below-installed capacity have started revving up production.

“Rice paddy that has been lying idle in stores are now being milled because distributors are increasing demand.

“We are also assuring Nigerians that we and other rice producers have the capacity to fill the loophole that the absence of smuggled rice would create.

“We have also committed ourselves in writing to the government that we will not take advantage of the situation to increase prices.

“A bag of 50-kilogramme rice will sell for a minimum of N13,300 And maximum of N14,000”, he stated.