Monday, 17 July 2017

Rice importation has not been reduced.

To say that Nigeria has reduced the importation of rice by 90% as stated by the Acting President of the Federal Republic of Nigeria Professor Yemi Osinbajo in his Democracy Day address might not be entirely true. Nigerians consume an amazing quantity of rice which borders on 500 metric tonnes a year! The government's policy on agriculture has led to attempts by farmers all over the country to seek to improve the production of rice up to levels considered to make the country self sufficient in rice production. The new target offered by the minister of agriculture is December 2017. The belief is that all the rice farms around the country would have started harvesting their investments. There are a tremendous number of farms in the middle belt of Nigeria and the south eastern state of Ebonyi that have focused on rice production. The collaboration between Kebbi and Lagos states which has led to the production of LAKE Rice has also contributed to a considerable increase in rice production in Nigeria. As at last year, statistics reveal that 18 states in Nigeria produce a a total of 5.7million metric tonnes. Even with all the combined production of the farms in the various states, the production is no where near the 500 million metric tons a year consumption level that the country requires. The United Kingdom's department of International Development DFID reports that a marker and growth rate of 7.9million tons each year was set in 2015 and that the country has not been able to meet the cut off. 
If Agriculture Minister Audu Ogbeh enforces the ban on rice this December it would only lead to an increase in smuggling. Currently in Nigeria, rice importation takes place legally through sea boarders, but there is high wave of illegal trade taking place through the land borders via smuggling. The general fear is that the ban would only increase the activity of smugglers through borders like the notorious Idi Iroko in Ogun State.
Another crucial factor is the price of rice locally produced.If and when the ban is instituted, prices of locally grown   rice cannot exceed that of smuggled rice or else the market for smuggling would be encouraged. 

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