Adedapo Adesanya
By Adedapo Adesanya
Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has reacted to the controversies that have followed the decision of the federal government to close land borders with neighbouring countries as a means of encouraging local production and stifle the activities of smugglers.
This has brought a lot of criticisms and complaints from traders who rely on importation and dismissed fears that the borders would be shut for a longtime.
However, the CBN chief, who met President Muhammadu Buhari before his scheduled departure to Saudi Arabia on Monday, told journalists that the closure stemmed from the need to boost rice production and encourage poultry farming in the country.
According to Mr Emefiele, there was a syndicate operating among neighbouring countries which dump processed foods and other goods in Nigeria, thereby stifling economic activities in the agricultural value chain.
Business Post had reported last month that the federal government had ordered the closure of all land borders into Nigeria due to the prohibited activities of smugglers.
“You will all recall that in November 2015, President Muhammadu Buhari, the central bank and some state governors went to Kebbi State to launch the wet season rice farming.
“Since then, we have seen an astronomical growth in the number of farmers who have been going into rice farming and our paddy production has gone up also quite exponentially.
“Between 2015 and also now, we have also seen an astronomical rise in the number of companies, corporate organisations and individuals that are setting up mills, integrated mills, and even small mills in the various areas,” the apex bank boss said.
Mr Emefiele added that the CBN in partnership with the Federal Ministry of Agriculture and Rural Development have put in place measures that does not only encourage the production of rice in Nigeria but also funding farmers by giving them loans to buy seedlings, fertilisers, or some of the herbicides needed for rice cultivation.
He also used the opportunity to lay a warning to parties involved in the illegal importation of banned goods into the country, “You will all recall that we have been embarking on a programme where we are saying if you are involved in the business of smuggling or dumping of rice in the country, we’ll close your account in the banking industry.”
Reiterating the bank’s commitment, he added, “About two weeks before the border closure, the chairman of the Rice Processors Association – incidentally he owns Umza Rice in Kano – called me and said that all the rice millers and processors are carrying in their warehouses nothing less than 25,000 metric tons of milled rice.
“That this rice has been unsold because of the smuggling and dumping of rice through Republic of Benin and other border posts that we have in the country, and that he would want us to do something about it.
“Secondly, we also have members of the Poultry Association of Nigeria who also complained that they have thousands of crates of eggs that they could not sell together with even some of the processed chickens that they could not sell, also arising from the problem of smuggling and dumping of poultry products in Nigeria.
“I was told also that after some meetings that were held in addition to those engagements that we (CBN) also held with the president, the border was closed subsequently.
“A week after the borders were closed, the same rice millers association called to tell us that all the rice that they had in their warehouses had all been sold.
“Indeed, a lot of people have been depositing money in their accounts and they have even been telling them ‘please, hold on, don’t even pay money yet until we finish processing your rice’.
“The Poultry Associations have also come to say that they have sold all their eggs, they have sold all their processed chickens, and that demand is rising.
He said that poultry and rice were the best examples of products that showed that the border closure were beneficial to the economy.
“The benefit is that it has helped to create jobs for our people. It has helped to bring our integrated rice milling that we have in the country back into business, and they are making money.
“Our rural communities are bubbling because there are activities, because rice farmers are able to sell their paddy.
“The poultry business is also doing well, and also maize farmers who produce maize from which feeds are produced are also doing business.
“These are the benefits. We are not saying that the borders should be closed in perpetuity, but that before the borders are reopened, there must be concrete engagements with countries that are involved in using their ports and countries as landing ports for bringing in goods that are smuggled into Nigeria.
“That engagement must be held so that we’ll agree on the basis under which: what are the kinds of products that they can land in their countries, because if those products they land in their countries are meant for their own local consumption, it is understandable.
“But the fact that those products are landed in their countries and then transshipped into Nigeria is something that I am sure you will all agree as Nigerians we should not allow to happen, because it undermines our economic policy, it undermines our own desire to make sure that industries are alive and jobs are created in Nigeria.” He added.
