Tuesday, 26 May 2015

Ex-minister urges new govt to ban rice importation

The new government of President-elect Muhammadu Buhari has been urged to stop the importation of rice into Nigeria as this will save the country billions of dollars annually.

A former Minister of Commerce and Industry, Engr. Charles Ugwuh, stated that Nigeria should declare a five-year import ban on rice, during which it should concentrate efforts to produce enough to meet national needs.

Ugwuh, who spoke in Abuja, noted that during the five year period, the Nigerian Customs Service should ensure that the country’s rice sector was protected against smuggling, adding that there should be a viable rewards system to encourage patriotic zeal in producing rice locally.

He said, “We call for a total ban on rice imports for at least five years to enable Nigeria produce its own food with the enormous natural resources and endowments we have. The nation can be self-sufficient in rice. We can eliminate food imports and save $9bn annually on wheat, rice, sugar, and fish.
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“Nigeria cannot afford to waste such a huge amount and export vital jobs overseas, when massive unemployment is such a great challenge threatening our national survival. We can grow rice and save the over $2.6bn per year (that) we currently spend on rice imports.”

The former minister explained that Nigeria has suitable ecology to grow rice paddy in virtually all parts of the country.

He said with dedication, perseverance and national commitment, Nigeria could grow and process rice to meet its domestic needs, and indeed, export to other African countries.

Ugwuh noted that a ready market exists for over 15 million tons from the West through Central and Southern Africa.

He said, “Nigeria has been striving hard to grow its capacity in paddy production and processing through massive investments in production infrastructure, power, water, irrigation facilities, dams and processing industries and technology.

“At this moment, Nigeria has made serious start, but the country is yet uncompetitive and needs even greater investments to compete with other countries in South East Asia, which have been producing rice for decades and have evolved a culture of rice at low cost and high yields that are difficult to match.

“Unfortunately, each time we make earnest efforts to grow our rice capacity to displace imports, our traditional rice suppliers from India, Thailand, Bangladesh, Vietnam, Cambodia, among others, double up their efforts through Diaspora merchants to beat us down.”

He explained that the Asian countries had high production efficiencies, better quality milled rice that were able to weaken Nigeria’s resolve and erode its competitiveness, forcing the country to buy from them and to abandon all well-laid plans, investments and import-substitution strategies.

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