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Massive Smuggling Hits Rice Markets As Tariff Rises

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With the kick-off of the new tariff regime on rice in the country this month, smuggling of the commodity into the country has assumed a frightening dimension, a Tide source gathered over the weekend.

The Agricultural Transformation Agenda of the Federal Government which led to the tariff in- crease was meant to help position locally produced rice to fairly compete In the market with imported ones and move the nation to self sufficiency in rice production.

According to The Tide’s investigation, thousands of bags of rice worth millions of Naira were being smuggled in to the country on a regular basis through waterways linking Nigeria with neigbouring Benin Republic and avoiding every legal duties and thwarting efforts to boost local production as well as sabotaging the business of genuine rice importers.

Nigeria’s local consumption of rice which stands at about 5.5 million tonnes annually and with locally processed rice standing at about 3.5 million tonnes per year, smugglers were taking advantage of the high tariff to make brisk profit through avoiding legitimate levies.

Vice President of Rice Importers and Distributors Association of Nigeria (RIDAN), Mr Boniface Nwodo while commenting on the development said the duty per tonne of rice imported into the country has increased from $227 dollars to $367 or about N58,000 currently adding that the increase was likely to trigger increased smuggling of rice.

According to him, smugglers have devised another means of bringing rice by canoes due to the ban on importation of rice through the nation’s land borders.

Recently, the Federal Government increased the duty on imported rice from 20 percent to 40 per cent but some stakeholders say a computation of this with other charges like ETLS of 0.5 per cent and FOB of one per cent brought the total duty and levies from 32.5 per cent to 50.5 per cent and that this has some impact on trade on rice.

Nwodo said the additional charges would likely encourage smuggling and advised government to monitor the unscrupulous import of rice through its water bodies to achieve its desired policy ideals.

RIDAN’s worries arose amidst reports that over 8,000 bags of rice were smuggled into the country daily and the calculation was that this runs into several millions of naira.

Recently, Minister of Agriculture Dr Akinwumi Adesina said the country would soon build the biggest rice farm in Africa in coordination with a United States bused company.

The project which is expected to gulp about $40 million will produces around 300,000 tonnes of rice and reduce rice imports by 15 per cent and result in import savings to around N54 billion about $342 million every year.

The Federal Government has said that the country has all it take to become an exporter of rice given its huge human and natural resources but arguments are that there was need to ensure availability of the product first given that it is a major staple for millions of Nigerians.

According to the president, the target was for Nigeria which is a top rice importer to produce 2.1 million tones of rice within the next four years as part of the nation’s aim to become rice-sufficient and shift its economy from being oil-centric to agriculture-centric.

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Agriculture

Food Crisis: Uwaleke Seeks Urgent Agricultural Reforms 

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The President of the Capital Market Academics of Nigeria, Prof. Uche Uwaleke, has called for urgent agricultural reforms and stronger support for farmers to improve food security in the country.

Uwaleke made the call in an interview with Newsmen Wednesday while reacting to the United Nations projection that millions of Nigerians could face acute hunger in the coming months.

The United Nations Humanitarian Country Team had warned that about 35 million Nigerians could face acute food insecurity between June and August.

According to the organisation, nearly one in seven Nigerians may experience severe food shortages during the 2026 lean season.

Uwaleke said the projection underscored the urgent need for Nigeria to strengthen its food production systems and address factors driving food insecurity.

“The warning should be taken seriously because it reflects the difficult realities many Nigerians are already experiencing, especially vulnerable households.

“A projection of about 35 million people facing acute hunger is disturbing for a country with enormous agricultural potential,” he said.

He attributed worsening food insecurity to inflation, insecurity in farming communities, climate-related challenges, naira depreciation and high transportation costs.

According to him, the combined effects of fuel subsidy removal and declining purchasing power have further reduced access to food for many Nigerians.

Uwaleke said the situation required immediate and coordinated interventions to prevent a deeper humanitarian crisis.

“The lean season is usually difficult, but the scale being projected by the United Nations suggests the need for urgent action from both government and development partners,” he said.

He acknowledged recent government measures aimed at improving food supply, including food imports and tariff reductions on selected commodities such as rice and palm oil.

He, however, said the interventions might not yield the desired results without stronger investments in local agricultural production and improved security for farmers.

“I believe the government has made efforts to address the situation, particularly through policies aimed at boosting food availability.

However, insecurity continues to disrupt farming activities in major food-producing areas, while inflation and weak purchasing power remain major concerns for ordinary Nigerians,” he said.

Uwaleke urged the Federal Government to increase support for farmers through subsidies on fertilisers, improved seedlings and other agricultural inputs ahead of the peak farming season.

He also stressed the need to improve security in farming communities to enable displaced farmers to return safely to their farms.

According to him, targeted food distribution programmes should be expanded to support vulnerable households across the country

Uwaleke further called for long-term investments in irrigation, mechanisation, storage facilities, rural infrastructure and agricultural research to strengthen food security.

He added that food security should be treated as both an economic and national security priority requiring sustained policy implementation and adequate funding.

 

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Agriculture

Livestock Minister Reaffirms Commitment To Integrating Apiculture Development Into  NL-GAS

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The Minister of Livestock Development, Idi Mukhtar Maiha, has reaffirmed the Federal Government’s commitment to integrating apiculture development into the implementation framework of the National Livestock Growth Acceleration Strategy (NL-GAS), designed to unlock the vast potential in the livestock value chain.

The Minister made this known in a keynote address at the World Bee Day 2026 celebration, held in Abuja, where he emphasised that the livestock value chain can be significantly transformed through targeted investments, innovation, private sector participation, youth empowerment, and inclusive economic growth.

 Director of Quality Assurance and Certification, Dr. Nurallah Abubakar, who represented the minister, stated that through the NL-GAS framework, the ministry is committed to promoting sustainable apiculture practices, strengthening value chain development for honey and other bee products, enhancing research, training, and extension services, improving access to markets and financing, encouraging climate-smart agricultural practices, and expanding opportunities for women and youth participation in the apiculture sector.
He noted that bees remain among nature’s most productive species, serving not only as honey producers, but also as critical pollinators that support crop reproduction, food security, biodiversity conservation, ecosystem stability, and climate resilience.
Abubakar further observed that bee populations globally are increasingly threatened by climate change, habitat loss, environmental degradation, bush burning, indiscriminate pesticide use, pests, and diseases. He stressed that the challenges require deliberate policy interventions, strengthened stakeholder collaboration, increased public awareness, and the adoption of sustainable environmental practices.
Also speaking, the representative of the Federal Ministry of Agriculture and Food Security, Mr. Mohammad Usman, reaffirmed the Ministry’s commitment to boosting honey and bee product production for both domestic consumption and export.

In her remarks, the Permanent Secretary of the Ministry of Livestock Development, Dr. Chinyere Ijeoma Akujobi, said the Ministry remains committed to strengthening interventions aimed at improving the apiculture subsector, promoting sustainable beekeeping practices, enhancing production standards, expanding market access, and protecting pollinator habitats across the country.

The Director of Ruminants and Monogastric, Mr. Victor Egbon, representshe also commended the Youth for Agriculture Initiative (YFAI) for its sustained partnership and commitment to the annual commemoration of World Bee Day.

In a goodwill message, the representative of the Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Dr. Osas Isokponomu, reaffirmed the Ministry’s commitment to supporting policies and programmes that promote value addition, industrialisation, export competitiveness, and market integration within the framework of the African Continental Free Trade Area (AfCFTA).

Earlier in his opening address, the President of the Youth for Apiculture Initiative (YFAI), Mr. Kingsley Nwagwu, called for the establishment of a National Apiculture Policy as a foundation for unlocking Nigeria’s emerging apiculture economy.

Participants at the event were drawn from relevant Ministries, Departments and Agencies, stakeholders, students, academia, research institutions, and development partners.

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Food Manufacturers Reject Multiple Taxes, Regulatory Burdens

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The Association of Food, Beverage, and Tobacco Employers (AFBTE) has cautioned the Federal Government against what it described as excessive taxation, arbitrary levies, and poor regulatory engagement, warning that these policies could threaten the survival of businesses in Nigeria’s food and beverage sector.

According to a statement, President of the AFBTE, Chinedum Okereke, gave the warning during the association’s 47th Annual General Meeting held recently in Lagos.

He stated that the food and beverage industry remained a critical pillar of the Nigerian economy because of its significant contributions to employment, public health, and economic growth, adding that government policies should support the sector rather than weaken it.

Okereke noted that many companies in the industry are struggling with rising operational costs and multiple taxes and charges imposed by government agencies without adequate consultation.

“The food and beverage sector remains a major player in the Nigerian economy in terms of its criticality to the financial and physical health of the nation, as well as the well-being of the people. Government support is therefore imperative,” Okereke said.

He added that the relationship between government institutions and businesses should be driven by collaboration, dialogue, and fairness to create a sustainable business environment.

The AFBTE chief also renewed the association’s opposition to the proposed ban on the packaging and sale of alcoholic drinks in sachets and small PET bottles, warning that the policy could worsen unemployment, reduce investment, and shrink government revenue.

“We are in the age of data and analytics Policies that affect businesses and livelihoods should be evidence-based,” Okereke said.

He noted that the industry had repeatedly demanded empirical evidence and statistical data to justify the proposed ban but claimed relevant authorities had yet to provide such information.

The AFBTE president further appealed to the Federal Government to introduce incentives and relief packages for manufacturers battling rising production costs, foreign exchange challenges and infrastructure deficits.

He also advocated the creation of more Free Trade Zones through the upgrade of existing industrial clusters, especially for long-established companies that have contributed significantly to Nigeria’s economic development but now face disadvantages compared to firms operating within free trade zones.

He observed that the absence of dialogue between the government and the private sector often creates avoidable disputes and weakens investor confidence.

Okereke added that the objectives of the Presidential Enabling Business Environment Council should remain a guiding principle for regulators and government agencies in promoting ease of doing business in the country.

Meanwhile, the Treasurer of AFBTE, Osaro Omogiade, disclosed that the association recorded a total income of N165.45m for the 2025 financial year, representing a 10.13 per cent increase from the N150.24m generated in 2024.

He attributed the increase largely to improved returns on investments in the money market through Stanbic IBTC and United Capital.

Omogiade, however, noted that the association’s expenditure rose by 14.22 per cent to N138.25m due to the increasing cost of running its secretariat, leaving a surplus of N27.21m compared to N29.19m recorded in the previous year.

 

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