FG Loses Over N20bn To Rice Smuggling

Following the tariff charged on imported rice in neighbouring Benin Republic, and Nigerians resolve to import the products illegally via land borders, experts say that the Federal Government may have lost well over N20 billion to rice smuggling between last year and now.

Where as duty imposed on rice in Nigeria stands at over 100 percent, in Benin Republic, duty on imported rice is not more than 20 percent.

The two borders of Seme-Badagry and Idiroko are used to bring imported rice from Benin Republic into Nigeria market.

The Alaba Rago rice market keeps on growing on daily basis as investigations by The Tide reveal that at least business activities at the market beside Alaba International market, Ojo are well on spiral increase.

Sources revealed that the heightening menace of rice smuggling along the border posts of seme and Idiroko, is induced by the differential duties, charged on the imported rice Cotonou in Benin Republic and Nigeria.

According to a source at the Secretariat of Rice importers and distributors in Lagos, over a total of ten billion naira which should go to the Federal Government was lost to rice smuggling between January and June this year.

The influx of the products has risen to between 35 and 40 metric tones per month since July 2009.

Expert therefore, have said that during this period of time, the Federal Government has lost over N14 billion to rice smuggling.

The Tide observed during a visit to the border that even the Federal government agencies that include police, armed forces personnel and others have taken advantage of the illegal business to augment their “Meager” salaries through engaging in “rice smuggling and prohibited frozen poultry products.

Meanwhile, the Economic Community for West Africa State (ECOWAS) has advocated for a “Common External Tariff” CET for its member states. The essence of CET according to ECOWAS sources is to harmonise trade amongst its member state and discourage smuggling in member Countries.

The RIDN has called on the Federal Government to quickly implement CET as a veritable measure to discourage rice smuggling.

The Manufacturers Association of Nigeria (MAN) however says it is not in support of CET.