By Franklin Alli

The Senate Committee on Industry has said it would mobilise action aimed at checkmating the activities of rice smugglers.

The Senate which made the promise while receiving members of the Rice Millers, Processors Association of Nigeria (RiMIDAN) in Abuja, frowned at a situation whereby genuine millers would be making huge investments in the economy, generating employment and supporting the country’s economic growth only for the smugglers to  jeopardize it.

Senate President, David Mark, said RiMIDAN actually deserves the support of the relevant agencies of the Federal Government in its efforts to ensure food availability and that one way of doing this is to stop the smugglers who are spoiling business for the genuine millers.

Members of upper (red) chamber

Their action he said is also harming the policies of the federal government as it regards food availability and job creation.

He said the Senate would as part of its contributions and in the carriage of its functions collaborates with relevant agencies of government to ensure that the smugglers are stopped from ruining the rice business and by extension the economy.

The Senate promise is coming amidst increasing concerns by the RiMIDAN over the activities of the smugglers.

The association which said at a recent media briefing that its members offers direct employment to no less than 4 million people nationwide, in addition to value addition to the economy.

RiMIDAN also contributes up to 84 per cent of the 1.8 million metric tons of rice produced in the country, with its members’ investments in plants, machinery and equipment as at mid 2012 reaching over N200bn, but all these are now under threat.

Citing the result of independent investigations at the borders, it says an estimated 30, 000 metric tons of rice is smuggled every month into country and when calculated, these would amount to about 1.7 billion in lost revenue.

Investigations show that the smugglers have been capitalising on porous Nigerian borders to flood the country with rice, while the genuine importers are paying as much as 50 per cent duty.

The chairman of the association, Mr. Tunji Owoeye,   said though they had complained repeatedly in the past, but that the problem has persisted.

He said government statistics show that yearly consumption or rice in the country is about 5.5million tones of which local production is about 1.8 million tones, thus necessitating importation to bridge the shortfall.

“Unfortunately, 50 percent of these imports are smuggled into the country. This is why the   nation cringes under the effect of any negative or adverse development that affects the agricultural sector”.

According to him, the total loss of revenue to the unwholesome activity over the last 12 months is over N32 billion.

He said what the smuggler are capitalising on the porous land borders especially the flank linking the country with Benin Republic, adding that RIMIDAN was ready to partner the Federal Government to ensure that the availability of rice at reasonable prices in the country.

“This will receive a big boost once the borders are effectively policed. It would be a big incentive for us as local farmers to produce more, and subsequently meet the local demand for rice. Our call is for the Federal government to strengthen its mechanism for policing the land borders especially the Seme border as well as other related areas where much of these acts are being perpetrated.”