BY JIDE AYOBOLU
It has been reported that not less than N1.3 trillion was spent by the
Federal Government on the importation of rice, fish, sugar and wheat in
the last 12 months, the Central Bank of Nigeria (CBN) made this
assertion only recently. The bank’s Deputy Governor, Corporate
Services, Edward Lametek, spoke at a seminar organised for Finance
reporters in Owerri, Imo State. Speaking on the theme: _Galvanising
development finance and monetary policy for growth_, the bank chief
restated the bank’s commitment to local production of the commodities,
saying that they put a lot of pressure on the country’s import bill.
He said economic diversification remained a sustainable way to grow the
economy. Lametek noted the Anchor Borrowers Programme (ABP), which was
launched in November 2015, was designed to build partnerships between
smallholder farmers and reliable large-scale agro-processors, with a
view to increasing agricultural output, while improving access to credit
for farmers. He said: Our targeted focus on the agricultural and
manufacturing sectors was driven by the vast opportunities for growth in
these sectors given our high population. These sectors have the ability
to absorb the growing pool of eligible workers in our effort to meet
local demand and save critical foreign reserves.
It would be recalled that Nigeria spent a total of N1.18 trillion
(about$7.4 billion) on the importation of toothpicks, fish, milk,
textiles, rice and furniture between2014 and May 2015, it was gathered.
According to figures obtained from the Central Bank of Nigeria (CBN),
fish imports gulped $1.39 billion while milk and rice imports accounted
for $1.33 billion and $51 million respectively. These commodities are
among 40 items which were recently included on the list of items banned
from accessing foreign exchange at the Nigerian Exchange Window by the
CBN partly because of the undue pressure they
exert on the local currency as well as the economic implication of such
imports on the
local industries. CBN Governor, Mr. Godwin Emefiele, had contended
that restricting selected item from accessing forex had become
inevitable in order to reduce pressure on external reserves which had
seen drastic decline as the apex bank has had to utilise it to defend
the naira following the volatility in the oil market. He further
argued that the new forex restriction was needed to sustain the
stability of the exchange market as well as facilitate the resuscitation
of domestic industries and improve employment generation.
According to figures obtained from the apex regulatory body, a total sum
of $998 million had already been spent on the importation of six items
between January and May 2015. A breakdown of the figures showed that
fish importation accounted for $374.04 million; rice-$220.3 million;
toothpick-$1.32 million; milk–$375.67 million; furniture-$20.39
million and textiles which accounted for $6.49 million within the first
five months of the year. In total, the sum of $2.73 billion was spent on
CBN excluded items in the period in review.
It is equally important to point out that, in 2013, total forex spent on
recently excluded items was valued at $3.37 billion. The figure
increased to $6.99 billion in 2014 and $2.73 billion between January and
May 2015. The figures further showed that in 2014, fish importation
gulped $1.02 billion while rice imports accounted for $291 million.
Others include toothpicks – $2.71 million; Milk-$960.7 million;
furniture – $63.39 million and textiles which accounted for $15.51
million.
President Muhammadu Buhari has directed the Central Bank of Nigeria to
block food importers’ requests for foreign currency in a bid to boost
local agriculture in Africa’s most populous country. It is a
continuation of a policy that the president began after coming to office
in 2015 when he banned the use of foreign exchange to import dozens of
items including the staple food, rice. Since then, domestic rice
production has increased, but the policy has been criticised for not
taking the low capacity of local farmers into consideration. The policy
has also coincided with a rise in food prices, which has been blamed on
insecurity in some of the country’s main food-producing areas. According
to data from Nigeria’s National Bureau of Statistics (NBS), the amount
of money the country has been spending on importing food and drink
increased from 2015 to 2017, dipped in 2018 and if the trend from the
first quarter of this year continues, the bill will go up again for this
year. In 2015, Nigeria spent nearly $2.9bn (£2.4bn) and by 2017 that
had risen to $4.1bn, the NBS says.
Nigeria does produce the basic food commodities such as sugar, wheat
flour, fish, milk, palm oil, pork, beef and poultry but up to now
domestic farmers have not been able to satisfy the demand of the
country’s 200 million people, hence the need for imports. With the
foreign exchange ban, Nigerian farmers will now have to increase
production. According to figures from the UN’s Food and Agriculture
Organization, rice production has increased from an annual average of
7.1 million tonnes between 2013 and 2017 to 8.9 million tonnes in 2018.
However, there are also reports that rice smuggling has increased – as
customs officials continue to seize large quantities of the grain at the
borders; this has necessitated the closure of the borders for quite a
while now.
Therefore, to put a stop to the perennial problem of import dependency,
the government must a matter of urgent national importance pulp more
money into the agricultural sector, and they must ensure that the funds
get to the actual people that really need them and not middlemen that
increase the cost of food items at the end of the day. The agricultural
production must increase astronomically, this suggests that much more
people must get into the agricultural sector and all the necessary
incentives for them to excel must be given to them as well as providing
the necessary environment for agriculture to thrive. They must be the
construction of feeder roads to link the rural areas and urban centres,
the government must provide storage facilities and also take into
cognizance the law of comparative advantage of each geo-political zones
to maximize production.
Furthermore, the need to patronise made-in-Nigeria goods cannot be
overemphasized as it is one major way to economic growth and
development. The economy of any nation grows rapidly when locally made
goods are promoted through patronage, first by its people than through
export. It is, however, dispiriting to know that we obviously have been
growing other countries’ economies through our over-dependence on
imported goods, especially those which have local substitutes. Nigeria
can easily experience a breakthrough in the quest for local content
development and a stable, strong and advanced economy if Nigerians would
patronise made-in-Nigeria products. Some time ago, in a decisive move to
grow and promote the economy, Minister of Science and Technology, Dr.
Ogbonnaya Onu, reiterated the government’s determination to promote
made-in-Nigeria products by giving preference to Nigerian professionals
in the execution of all government projects. Dr. Onu said that the
Federal Government had issued Executive Order No. 5, which made it
mandatory for all Ministries, Departments and Agencies (MDAs) to
patronise made-in-Nigeria products without compromising standards. It
will be recalled that the Executive Order was signed in February 2018 by
President Muhammadu Buhari, titled “Presidential Executive Order 5 for
planning and execution of projects, promotion of Nigerian contents in
contracts and science, engineering and technology.” This order is a
welcome development and a step in the right direction towards growing
Nigeria’s weak economy. The executive order, if well implemented and
carried out, will not only create job opportunities but it will also
ensure that those jobs for which local expertise are available are not
taken over by foreigners. Nigerians must learn to consume and use things
they produce and not rely entirely on foreign items for consumption and
usage.
According to the minister, the Executive Order which seeks to promote
locally made goods will trigger a silent revolution in how we think as a
people and how we regard science and technology as the missing link in
our quest to become a truly great nation. It is quite interesting to
know that the Executive Order bars the Ministry of Interior from giving
visas to foreign workers whose skills are readily available in Nigeria.
This is pivotal in order to avoid falling for the shenanigans of the
so-called ‘expatriates’ who may even be illegal aliens with no
qualifications but are only experienced in one area of work
specialisation. Not only will poverty be kept at bay in our country but
also the teeming youths of working-class background would be
productively engaged if we all unanimously begin to patronise Nigerian
products. The gainful employment of the nation’s abundant local labour
is guaranteed if an outright ban is placed on massive importation and
consumption of foreign products with no local value addition and which
can be replaced with local products. There is also a need to shun the
culture of giving employment preference to expatriates ahead of our
indigenously trained professionals who are intelligently capable of
doing the same job. Our over-dependence on imported products will
dwindle, thereby growing our economy and promoting our local content if
we as Nigerians will patronise made-in-Nigeria products. This way, the
nation becomes self-reliant in producing and utilising goods produced by
itself. This will create wealth and reduce poverty.
Besides, the national economy must be prudently managed and the scarce
revenue must not be dissipated on conspicuous consumption and luxury,but
through frugal spending manage the economy sagaciously; there must be
tightening of belt and blocking of leakages and wastages in government.
Also, President Muhammadu Buhari has defended the temporary closure of
the country’s land borders, saying that it had reduced domestic fuel
consumption by 30 per cent. Buhari, who said there had yet to be any
decision on when the borders would be reopened, said deep-rooted
dishonesty made the Federal Government to close the borders. He,
however, said farmers were among the biggest beneficiaries of the
government’s decision to close the borders, which had led to a
remarkable drop in the smuggling of goods, especially rice.
Acknowledging the efforts of farmers, Buhari said, “Farmers must be
protected. Dishonesty is deep-rooted in the country. Otherwise, the
border closure would not have been warranted.” Buhari was speaking in
Daura, Katsina State, when a delegation of Katsina State Elders Forum
visited him at his country home.
“The President said the country’s domestic fuel consumption had
dropped by more than 30 per cent, following closure of land borders”,
a State House statement by his media aide, Mr Garba Shehu, quoted the
President as saying. The statement added, “The President commended the
actions taken by the President of Niger Republic, Muhammadou Youssoufou,
including the dismissal of officials and a ban on use of the country as
a dumping ground for Nigeria-bound smuggled goods. “President Buhari
noted that the measures taken by the President of Niger were helpful and
supportive. “President Buhari acknowledged the hardship of border
communities following the ban on sale of fuel at stations 20 kilometres
to the border, a restriction that also saw to the closure of all fuel
stations in his native home, Daura.” He stated that the Nigeria
Customs Service was reviewing all border outlets in a bid to identify
the illegal routes used for smuggling and those officially recognised
for genuine transactions. “President Buhari told the delegation that
he intends forging ahead with poverty alleviation schemes and the
agricultural and livestock reforms started by the administration in the
first term since the election was behind him and a government now in
place. “He explained that the reforms, especially those relating to
the settlement of livestock herders would take time to accomplish,
assuring that his deliberate choice of tested farmers as his past and
current ministers of agriculture was informed by the need to carry his
vision through”, the Presidency added.
Relatedly, President Muhammadu Buhari defended the temporary closure of
the country’s land borders, saying that it had reduced domestic fuel
consumption by 30 per cent. Buhari, who said there had yet to be any
decision on when the borders would be reopened, said deep-rooted
dishonesty made the Federal Government to close the borders. He,
however, said farmers were among the biggest beneficiaries of the
government’s decision to close the borders, which had led to a
remarkable drop in the smuggling of goods, especially rice.
Acknowledging the efforts of farmers, Buhari said, “Farmers must be
protected. Dishonesty is deep-rooted in the country. Otherwise, the
border closure would not have been warranted.” Buhari was speaking in
Daura, Katsina State, when a delegation of Katsina State Elders Forum
visited him at his country home. “The President said the country’s
domestic fuel consumption had dropped by more than 30 per cent,
following closure of land borders”, a State House statement by his
media aide, Mr Garba Shehu, quoted the President as saying. The
statement added, “The President commended the actions taken by the
President of Niger Republic, Muhammadou Youssoufou, including the
dismissal of officials and a ban on use of the country as a dumping
ground for Nigeria-bound smuggled goods. “President Buhari noted that
the measures taken by the President of Niger were helpful and
supportive. “President Buhari acknowledged the hardship of border
communities following the ban on sale of fuel at stations 20 kilometres
to the border, a restriction that also saw to the closure of all fuel
stations in his native home, Daura.”
He stated that the Nigeria Customs Service was reviewing all border
outlets in a bid to identify the illegal routes used for smuggling and
those officially recognised for genuine transactions. “President
Buhari told the delegation that he intends forging ahead with poverty
alleviation schemes and the agricultural and livestock reforms started
by the administration in the first term since the election was behind
him and a government now in place. “He explained that the reforms,
especially those relating to the settlement of livestock herders would
take time to accomplish, assuring that his deliberate choice of tested
farmers as his past and current ministers of agriculture was informed by
the need to carry his vision through”, the Presidency added.
Meanwhile, the Federal Government said it had uncovered “hundreds of
filling stations” along Nigeria’s Magama Jibia border with the
Republic of Niger purposely set up for the smuggling of petroleum
products. The government identified fuel smuggling, illegal migration,
importation of arms and ammunition and smuggling of rice from the
Republic of Benin to Nigeria through Niger Republic as some of the
challenges on the border communities. The Minister of Information and
Culture, Lai Mohammed, who led a high-powered delegation of the Federal
Government to Magama Jibia, Nigeria’s border with the Republic of
Niger, said with the border closure, Nigeria had recorded 30 per cent
drop in domestic fuel consumption.
Then, there must a national reorientation for the people of this country
to consume only what they produce and focus on ways of helping the
government to develop the domestic economy and wait for foreigners to
help them develop their own economy for them. The government too must
pursue homespun economic philosophy that has direct bearing on the
socio-economic wellbeing of the people. This is the way to go if the
country is to halt the import dependency syndrome and it is a good
development that the present administration is on the path already, and
this will surely bear good fruits for the country.