Business
‘Reverse Ban On Rice Importation Through Borders’
A freight forwarder, Alhaji
Tajudeen Adetayo, has urged the Federal Government to reverse the policy banning rice importation through the border posts.
He made the plea in an interview with The Tide source in Lagos last week.
The Tide reports that the Nigeria Customs Service (NCS) in October 2015 lifted the ban on rice importation through the borders but the service went back to the ban in March 2016, due to heavy smuggling of the commodity.
Adetayo, who is Chairman, Freight Forwarders Association Badagry (FFAB), pleaded that government should allow duty payment on rice through the border posts to generate more revenue.
According to him, a committee should be inaugurated by the Federal Government to look into issue of rice importation in the country.
He noted that the Ogun Command of the Customs Service generated over N1 billion within the short period the ban on rice through the border posts was lifted.
Adetayo said that some people would continue to smuggle as long as government imposed a restriction on rice importation through the border posts.
“Banning rice imports is not a good omen. When Nigeria has sufficient foods, then importation of rice can be banned,’’ he told our correspondent.
Adetayo added that Customs could not man all the porous routes alone.
The freight forwarder said that activities at the border posts were also low due to the high exchange rate and the ban on rice, which had given room for smuggling.
According to him, as at today, the exchange rate is as high as 1 million CFA to N620,000.
“From Cotonou, a Starlet car with Duty Paid Value is now above N1 million. It is now better to buy a car in Lagos,’’ Adetayo said.
He urged the Central Bank of Nigeria (CBN) to intervene so that importers would be able to raise foreign exchange at cheaper rates.
The freight forwarder, however, called on the Inspector-General of Police, Mr Solomon Arase, to dismantle the 30 road blocks between Idiroko, Ajielete and Ilase.
He described the road blocks as major hindrance to trade, adding that a journey of one or two hours, might take five hours on the road.
“We do travel to Benin Republic and Togo with three to four check points to Togo.
“On roads leading to the border posts, the Police, Customs, everybody is at the check points
“Customs officers have the right to be at the road blocks but the Police should not be there,’’ Adetayo said.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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