BY JIDE AYOBOLU<\/p>\n
It has been said that goods worth N1.45 trillion are smuggled into
\nNigeria annually from Benin Republic. This was the revelation from Simon
\nTsuwan, a representative of the Acting Managing Director, Nigeria Export
\nProcessing Zones Authority (NEPZA), David Terhemba Nongo, has revealed.
\nHe spoke on the sidelines of a two-day national workshop in Lagos,
\nrecently. The workshop, which sought to examine the role the Maritime
\nindustry in the Africa Continental Free Trade Agreement (AfCFTA), with
\nthe theme: \u201cAfCFTA: Boosting Nigeria\u2019s Economy for Sustainable
\nDevelopment,\u201d was organised by the Association of Maritime Journalists
\nof Nigeria (AMJON). Tsuwan rued the menace of smuggling through the
\nBenin Republic corridor into Nigeria, saying it has taken a huge
\nnegative economic influence on the nation. To this end, he revealed that
\nNEPZA was ready to support the Federal Government on border closure.<\/p>\n
According to him, a recent World Bank report stated that about N1.45
\ntrillion worth of goods are smuggled into Nigeria annually through the
\nBenin Republic border with Nigeria alone. He said that the disturbing
\nsituation of smuggling prompted Africa\u2019s foremost industrialist, Aliko
\nDangote, to lament that there is no country that can survive with Benin
\nRepublic as a neighbour. The closure, he reiterated, would help to boost
\nlocal manufacturing, job creation and economic growth by checking the
\nsmuggling of goods into the country, including helping to increase the
\ncountry\u2019s global competitiveness as well as attracting investors.<\/p>\n
Smuggling is the illegal transportation of objects, substances,
\ninformation or people, such as out of a house or buildings, into a
\nprison, or across an international border, in violation of applicable
\nlaws or other regulations. There are various motivations to smuggle.
\nThese include the participation in illegal trade, such as in the drug
\ntrade, illegal weapons trade, exotic wildlife trade, illegal immigration
\nor illegal emigration, tax evasion, providing contraband to a prison
\ninmate, or the theft of the items being smuggled.<\/p>\n
Smuggling has a lot of disadvantages because smuggling isn\u2019t regulated
\nand outside of the government\u2019s tax net which can lead to a loss of
\nrevenue; Smuggling generates huge profits \u2013 most of which goes back to
\nthe crime syndicate to fun more illegal activity. This creates a rise in
\ncrime and can affect tourism, amongst other things; The evasion of tax
\nand duties on smuggled goods inevitably mean a loss of tax revenue for
\nthe government \u2013 which eventually reduces their ability to develop and
\nprogress as a state or country; While legitimate businesses pay a series
\nof taxes on the goods they produce, smuggling bypasses these taxes which
\nslowly destroys the local economy; When smuggling overtakes a
\nfunctioning economy, it creates instability. This then discourages
\nbusiness and investments from coming into the area. For these reasons,
\nand others besides, smuggling is highly illegal and results in fines and
\nlengthy prison sentences.<\/p>\n
It is as a result of the menace of struggling on the Nigerian economy
\nthat President Muhammadu Buhari ordered for the closure of the borders,
\nthis is because, not only is smuggling killing infant and cottage
\nindustries, but unfortunately, the country has become a dumping ground
\nfor all sorts of sub-standard goods, many of which are very toxic and
\nhazardous to health. Smuggling kills initiatives and aides laziness, as
\nthe generality of the people have become accustomed to things foreign
\nand expresses disdain for things produced locally. And, the point must
\nbe made that, no country can genuinely grow and develop without
\ndeliberately focusing and developing the local industries and
\ncapacities. Therefore, the closure of the borders is more than any other
\nmeant to make Nigerians use and eat what they produce and not overtly
\nimport-dependent; it will also make the food self-sufficiency, increase
\nthe revenue that accrues to the government, while aiding increase export
\nprofile of the country and at the same time, systematically diversifying
\nthe economic base of the country away from mono-cultural dependency and
\nneo-colonial influences.<\/p>\n
It is imperative to vividly underscore the fact that, smuggling is one
\nof the world\u2019s oldest professions. When nation-states established
\nborders and sought to regulate traffic across them, they created markets
\nfor the smuggling of humans as well as goods. Human smuggling involves
\nillegal immigration and transnational criminal networks of various
\ndegrees of organization. Many smuggled aliens willingly participate.
\nOthers are duped or coerced. All are vulnerable to exploitation, abuse
\nand violence, making smuggling–and its most pernicious form,
\ntrafficking in humans for sexual and other exploitation–a barrier to
\nthe protection of migrant workers and their families. Alien smuggling is
\nassociated with many other social problems: sweatshops, involuntary
\nservitude; buying and selling of human beings; fraudulent documents;
\ncorruption; transnational organized crime; and other crime. It is hard
\nto detect and prosecute. Global communications allow smugglers to
\nrapidly change routes, countries of transit and of destination, and
\nschedules. The production of high-quality counterfeit documents is easy.<\/p>\n
Besides, human smuggling operations take many different forms. Research
\nsuggests an emerging pattern of increasing professionalization. This
\npattern may vary by the type and location of the smuggling. To use
\ntrafficking into the United States from Mexico to illustrate the various
\npatterns of smuggling, at the most informal levels, aliens are helped by
\nfamily and friends to traverse the border. At a slightly more organized
\nlevel, local agents may be used to link migrants to more formal
\nsmuggling operations. The local contacts, who are generally well known
\nto the migrants, tell them who to contact at the border to help them
\ngain entry into the United States.<\/p>\n
Smuggling is not just about the illegitimate transportation of goods or
\ncommodities across borders; at the border there are several types of
\nservices offered, some requiring a very high level of
\nprofessionalization as well as networks in the country they are going
\nto: for example, assistance in crossing without inspection; safe houses;
\ntransportation to interior locations; and links to employers. At
\nports-of-entry, some smuggling operations sell or rent documents.
\nDocuments may be forged border crossing cards or visas, but smugglers
\nalso sell real documents that permit an imposter with similar physical
\nfeatures to fool the inspectors. Once through the inspection line, the
\ndocument may be retrieved and used again. For a higher fee, the migrants
\nmay keep the documents to verify eligibility for lawful employment. Some
\nsmugglers act like legitimate business people, guaranteeing these
\nservices and agreeing to receive final payment when the migrant reaches
\nthe final destination. Other smuggling\/trafficking operations are far
\nless benign. Smugglers pack large numbers of migrants into small,
\nunventilated spaces to cross borders or reach ports. Fearing
\napprehension by border authorities, smugglers have left migrants without
\nwater or protection from the hot sun. As smuggling fees increase and
\nmigrants find it difficult to pay all costs at once, smugglers, in
\neffect, sell migrants to businesses that cover the fees in exchange for
\nindentured labour. In one of its most troubling forms, trafficking can
\namount to virtual slavery, particularly for women and children forced
\ninto sexual exploitation.<\/p>\n
Moreover, the joint border security exercise ordered by the government
\nand aimed at securing Nigeria\u2019s land and maritime borders, are solid
\nsector policy measures that were recommended by those entrusted with
\nregulating our monetary and fiscal policies, namely the CBN, the finance
\nministry, with obvious input from the ministry of agriculture. The
\nsynergy just had to be put in place in formulating a sustainable policy
\nto help the nation achieve putting Nigeria and Nigerian produce and
\ngoods, first. That synergy seemingly has berthed, and it is all good.
\nThe customs department has been recording phenomenal increases in
\nrevenues, as most goods smuggled through the land borders have had to be
\nberthed, diverted to our seaports. Local products and farm produce are
\nnow gradually being accepted as worthy alternatives to more often than
\nnot, inferior imports. Farmers are finally having the sense of belonging
\nand entitlement to the recognition of their sweats, industry and
\ncommitment.<\/p>\n
Furthermore, the successes being recorded in the agricultural sector are
\ntoo delicate to be left in the lurch by the continued and renewed
\nactivities of smugglers. Now that there are noticeable interests in
\nsmall to medium to large scale investments in the agriculture sector, it
\nbehoves the handlers of the economy to help put in place not only the
\nenabling environment but also the fiscal and monetary protection needed
\nto help indigenous businesses grow. The Central Bank has also
\nintensified upon the need to provide loans and facilities in the
\ncritical sectors of production including Agricultural Credit Guarantee
\nScheme Fund, Agricultural Credit Support Scheme, Commercial Agriculture
\nCredit Scheme, Micro, Small and Medium Enterprises Development Fund, are
\nsome of the instruments put in place to stimulate growth,
\nconscientiously and consciously by the CBN. The implementation and
\ndisbursement of these instruments through the various banks, being
\ndiligently supervised by the CBN. It is therefore important that certain
\nmeasures be put in place for the sake of the Nigerian economy hence the
\nneed for the border closures and other Allied matters at these present
\ntimes. That farmers are gradually going back to their farms, especially
\nafter the many cases of insecurity, farmers\/herders clashes, that have
\nnoticeably and significantly reduced, a drain on the economy itself, the
\ncountry must move forward. There is no doubt that efforts such as the
\nborder closures will help to save huge sums of money which would
\notherwise have been expended on importing locally produced goods and
\nrice using our scarce foreign reserves.<\/p>\n
The central bank governor, Godwin Emefiele, believes smugglers are
\n\u201ckilling\u201d Nigeria\u2019s economy. Speaking at a roundtable event in
\nLagos, he said: \u201cNigeria is very good at making brilliant economic
\npolicies, but smugglers are those sabotaging these policies\u201d. Thus, he
\nsaid, the CBN would \u201cblock the smugglers\u2019 accounts in all Nigerian
\nbanks\u201d. Those circumventing the government\u2019s foreign exchange
\nrestrictions on certain imports would also be \u201cblacklisted\u201d and
\nprevented from operating in the foreign exchange market and the banking
\nindustry. Emefiele said the CBN \u201chas the names of individuals and
\ncompanies involved in smuggling\u201d. Which shouldn\u2019t be surprising. In
\nher book, Reforming the Unreformable, former Finance Minister Dr Ngozi
\nOkonjo-Iweala wrote that: \u201cNigeria must be one of the few countries in
\nthe world where smugglers are known and talked about openly, and where
\nthese same big-time smugglers walk around freely in the corridors of
\npowers\u201d. So, smugglers are ubiquitous in Nigeria.<\/p>\n
But thank God that President Buhari is taking the bull by the horns and
\nhas decided to close the borders in the overriding interest of the
\ncountry. For instance, a World Bank report states thus: \u201cThe total
\namount of potential smuggling from Benin is estimated at close to $5bn,
\nnearly 10% of Nigeria\u2019s official imports\u201d. Recently, the Financial
\nTimes published a story entitled: \u201cSmuggled rice makes mockery of
\nNigerian question to boost farming\u201d, in which it said that \u201cmore
\nthan one million tonnes of rice entered Nigeria through its porous
\nborder with Benin in the first three months of this year\u201d.<\/p>\n
Fact be told, smuggling is one of the serious problems facing the
\nNigerian economy which has contributed to its stunted growth. Greed for
\nwealth, ignorance and lack of patriotism have been identified as major
\ncauses of smuggling. In a report, World Bank had noted that N750 billion
\nworth of different goods are smuggled into Nigeria through Benin
\nRepublic alone every year, with uncollected taxes and custom duties
\nwhich hinder economic growth. It noted that $400 million representing
\nabout 25 per cent of the total current annual revenue collected by the
\ncustoms is lost through smuggling across borders. Also, the Nigerian
\nTextile Manufacturers\u2019 Association, NTMA, reportedly noted that
\nNigeria losses $325 million yearly due to evasion of customs duty and
\nvalue-added tax by smugglers of textile materials.<\/p>\n
It has been said that economic sabotage by citizens is a deliberate act
\nto flout economic policies of a country which results in undermining,
\nweakening or destroying the economy. It is one of the worst things to
\nhappen to a country because the economy is the lifeblood of a people. A
\nbooming economy is the delight of citizens while a sabotaged and
\ndepressed economy is a reproach. An undermined economy can hardly grow
\nand develop optimally which can result in a vicious cycle of poverty,
\noutbreak of social vices and insecurity which hinders investment and
\nperpetuates the vicious cycle.<\/p>\n
BY JIDE AYOBOLU It has been said that goods worth N1.45 trillion are smuggled into Nigeria annually from Benin Republic. This was the revelation from Simon Tsuwan, a representative of…<\/p>\n","protected":false},"author":1,"featured_media":70673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-70672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\n