BY JIDE AYOBOLU<\/p>\n
It has been reported that not less than N1.3 trillion was spent by the
\nFederal Government on the importation of rice, fish, sugar and wheat in
\nthe last 12 months, the Central Bank of Nigeria (CBN) made this
\nassertion only recently. The bank\u2019s Deputy Governor, Corporate
\nServices, Edward Lametek, spoke at a seminar organised for Finance
\nreporters in Owerri, Imo State. Speaking on the theme: _Galvanising
\ndevelopment finance and monetary policy for growth_, the bank chief
\nrestated the bank\u2019s commitment to local production of the commodities,
\nsaying that they put a lot of pressure on the country\u2019s import bill.
\nHe said economic diversification remained a sustainable way to grow the
\neconomy. Lametek noted the Anchor Borrowers Programme (ABP), which was
\nlaunched in November 2015, was designed to build partnerships between
\nsmallholder farmers and reliable large-scale agro-processors, with a
\nview to increasing agricultural output, while improving access to credit
\nfor farmers. He said: Our targeted focus on the agricultural and
\nmanufacturing sectors was driven by the vast opportunities for growth in
\nthese sectors given our high population. These sectors have the ability
\nto absorb the growing pool of eligible workers in our effort to meet
\nlocal demand and save critical foreign reserves.<\/p>\n
It would be recalled that Nigeria spent a total of N1.18 trillion
\n(about$7.4 billion) on the importation of toothpicks, fish, milk,
\ntextiles, rice and furniture between2014 and May 2015, it was gathered.
\nAccording to figures obtained from the Central Bank of Nigeria (CBN),
\nfish imports gulped $1.39 billion while milk and rice imports accounted
\nfor $1.33 billion and $51 million respectively. These commodities are
\namong 40 items which were recently included on the list of items banned
\nfrom accessing foreign exchange at the Nigerian Exchange Window by the
\nCBN partly because of the undue pressure they
\nexert on the local currency as well as the economic implication of such
\nimports on the
\nlocal industries. CBN Governor,\u00a0 \u00a0Mr. Godwin Emefiele, had contended
\nthat restricting selected item from accessing forex had become
\ninevitable in order to reduce pressure on external reserves which had
\nseen drastic decline as the apex bank has had to utilise it to defend
\nthe naira following the volatility in the oil market.\u00a0 \u00a0 \u00a0He further
\nargued that the new forex restriction was needed to sustain the
\nstability of the exchange market as well as facilitate the resuscitation
\nof domestic industries and improve employment generation.<\/p>\n
According to figures obtained from the apex regulatory body, a total sum
\nof $998 million had already been spent on the importation of six items
\nbetween January and May 2015. A breakdown of the figures showed that
\nfish importation accounted for $374.04 million; rice-$220.3 million;
\ntoothpick-$1.32 million; milk\u2013$375.67 million; furniture-$20.39
\nmillion and textiles which accounted for $6.49 million within the first
\nfive months of the year. In total, the sum of $2.73 billion was spent on
\nCBN excluded items in the period in review.<\/p>\n
It is equally important to point out that, in 2013, total forex spent on
\nrecently excluded items was valued at $3.37 billion. The figure
\nincreased to $6.99 billion in 2014 and $2.73 billion between January and
\nMay 2015. The figures further showed that in 2014, fish importation
\ngulped $1.02 billion while rice imports accounted for $291 million.
\nOthers include toothpicks \u2013 $2.71 million; Milk-$960.7 million;
\nfurniture \u2013 $63.39 million and textiles which accounted for $15.51
\nmillion.<\/p>\n
President Muhammadu Buhari has directed the Central Bank of Nigeria to
\nblock food importers’ requests for foreign currency in a bid to boost
\nlocal agriculture in Africa’s most populous country. It is a
\ncontinuation of a policy that the president began after coming to office
\nin 2015 when he banned the use of foreign exchange to import dozens of
\nitems including the staple food, rice. Since then, domestic rice
\nproduction has increased, but the policy has been criticised for not
\ntaking the low capacity of local farmers into consideration. The policy
\nhas also coincided with a rise in food prices, which has been blamed on
\ninsecurity in some of the country’s main food-producing areas. According
\nto data from Nigeria’s National Bureau of Statistics (NBS), the amount
\nof money the country has been spending on importing food and drink
\nincreased from 2015 to 2017, dipped in 2018 and if the trend from the
\nfirst quarter of this year continues, the bill will go up again for this
\nyear. In 2015, Nigeria spent nearly $2.9bn (\u00a32.4bn) and by 2017 that
\nhad risen to $4.1bn, the NBS says.<\/p>\n
Nigeria does produce the basic food commodities such as sugar, wheat
\nflour, fish, milk, palm oil, pork, beef and poultry but up to now
\ndomestic farmers have not been able to satisfy the demand of the
\ncountry’s 200 million people, hence the need for imports. With the
\nforeign exchange ban, Nigerian farmers will now have to increase
\nproduction. According to figures from the UN’s Food and Agriculture
\nOrganization, rice production has increased from an annual average of
\n7.1 million tonnes between 2013 and 2017 to 8.9 million tonnes in 2018.
\nHowever, there are also reports that rice smuggling has increased – as
\ncustoms officials continue to seize large quantities of the grain at the
\nborders; this has necessitated the closure of the borders for quite a
\nwhile now.<\/p>\n
Therefore, to put a stop to the perennial problem of import dependency,
\nthe government must a matter of urgent national importance pulp more
\nmoney into the agricultural sector, and they must ensure that the funds
\nget to the actual people that really need them and not middlemen that
\nincrease the cost of food items at the end of the day. The agricultural
\nproduction must increase astronomically, this suggests that much more
\npeople must get into the agricultural sector and all the necessary
\nincentives for them to excel must be given to them as well as providing
\nthe necessary environment for agriculture to thrive. They must be the
\nconstruction of feeder roads to link the rural areas and urban centres,
\nthe government must provide storage facilities and also take into
\ncognizance the law of comparative advantage of each geo-political zones
\nto maximize production.<\/p>\n
Furthermore, the need to patronise made-in-Nigeria goods cannot be
\noveremphasized as it is one major way to economic growth and
\ndevelopment. The economy of any nation grows rapidly when locally made
\ngoods are promoted through patronage, first by its people than through
\nexport. It is, however, dispiriting to know that we obviously have been
\ngrowing other countries\u2019 economies through our over-dependence on
\nimported goods, especially those which have local substitutes. Nigeria
\ncan easily experience a breakthrough in the quest for local content
\ndevelopment and a stable, strong and advanced economy if Nigerians would
\npatronise made-in-Nigeria products. Some time ago, in a decisive move to
\ngrow and promote the economy, Minister of Science and Technology, Dr.
\nOgbonnaya Onu, reiterated the government\u2019s determination to promote
\nmade-in-Nigeria products by giving preference to Nigerian professionals
\nin the execution of all government projects. Dr. Onu said that the
\nFederal Government had issued Executive Order No. 5, which made it
\nmandatory for all Ministries, Departments and Agencies (MDAs) to
\npatronise made-in-Nigeria products without compromising standards. It
\nwill be recalled that the Executive Order was signed in February 2018 by
\nPresident Muhammadu Buhari, titled \u201cPresidential Executive Order 5 for
\nplanning and execution of projects, promotion of Nigerian contents in
\ncontracts and science, engineering and technology.\u201d This order is a
\nwelcome development and a step in the right direction towards growing
\nNigeria\u2019s weak economy. The executive order, if well implemented and
\ncarried out, will not only create job opportunities but it will also
\nensure that those jobs for which local expertise are available are not
\ntaken over by foreigners. Nigerians must learn to consume and use things
\nthey produce and not rely entirely on foreign items for consumption and
\nusage.<\/p>\n
According to the minister, the Executive Order which seeks to promote
\nlocally made goods will trigger a silent revolution in how we think as a
\npeople and how we regard science and technology as the missing link in
\nour quest to become a truly great nation. It is quite interesting to
\nknow that the Executive Order bars the Ministry of Interior from giving
\nvisas to foreign workers whose skills are readily available in Nigeria.
\nThis is pivotal in order to avoid falling for the shenanigans of the
\nso-called \u2018expatriates\u2019 who may even be illegal aliens with no
\nqualifications but are only experienced in one area of work
\nspecialisation. Not only will poverty be kept at bay in our country but
\nalso the teeming youths of working-class background would be
\nproductively engaged if we all unanimously begin to patronise Nigerian
\nproducts. The gainful employment of the nation\u2019s abundant local labour
\nis guaranteed if an outright ban is placed on massive importation and
\nconsumption of foreign products with no local value addition and which
\ncan be replaced with local products. There is also a need to shun the
\nculture of giving employment preference to expatriates ahead of our
\nindigenously trained professionals who are intelligently capable of
\ndoing the same job. Our over-dependence on imported products will
\ndwindle, thereby growing our economy and promoting our local content if
\nwe as Nigerians will patronise made-in-Nigeria products. This way, the
\nnation becomes self-reliant in producing and utilising goods produced by
\nitself. This will create wealth and reduce poverty.<\/p>\n
Besides, the national economy must be prudently managed and the scarce
\nrevenue must not be dissipated on conspicuous consumption and luxury,but
\nthrough frugal spending manage the economy sagaciously; there must be
\ntightening of belt and blocking of leakages and wastages in government.<\/p>\n
Also, President Muhammadu Buhari has defended the temporary closure of
\nthe country\u2019s land borders, saying that it had reduced domestic fuel
\nconsumption by 30 per cent. Buhari, who said there had yet to be any
\ndecision on when the borders would be reopened, said deep-rooted
\ndishonesty made the Federal Government to close the borders. He,
\nhowever, said farmers were among the biggest beneficiaries of the
\ngovernment\u2019s decision to close the borders, which had led to a
\nremarkable drop in the smuggling of goods, especially rice.
\nAcknowledging the efforts of farmers, Buhari said, \u201cFarmers must be
\nprotected. Dishonesty is deep-rooted in the country. Otherwise, the
\nborder closure would not have been warranted.\u201d Buhari was speaking in
\nDaura, Katsina State, when a delegation of Katsina State Elders Forum
\nvisited him at his country home.<\/p>\n
\u201cThe President said the country\u2019s domestic fuel consumption had
\ndropped by more than 30 per cent, following closure of land borders\u201d,
\na State House statement by his media aide, Mr Garba Shehu, quoted the
\nPresident as saying. The statement added, \u201cThe President commended the
\nactions taken by the President of Niger Republic, Muhammadou Youssoufou,
\nincluding the dismissal of officials and a ban on use of the country as
\na dumping ground for Nigeria-bound smuggled goods. \u201cPresident Buhari
\nnoted that the measures taken by the President of Niger were helpful and
\nsupportive. \u201cPresident Buhari acknowledged the hardship of border
\ncommunities following the ban on sale of fuel at stations 20 kilometres
\nto the border, a restriction that also saw to the closure of all fuel
\nstations in his native home, Daura.\u201d He stated that the Nigeria
\nCustoms Service was reviewing all border outlets in a bid to identify
\nthe illegal routes used for smuggling and those officially recognised
\nfor genuine transactions. \u201cPresident Buhari told the delegation that
\nhe intends forging ahead with poverty alleviation schemes and the
\nagricultural and livestock reforms started by the administration in the
\nfirst term since the election was behind him and a government now in
\nplace. \u201cHe explained that the reforms, especially those relating to
\nthe settlement of livestock herders would take time to accomplish,
\nassuring that his deliberate choice of tested farmers as his past and
\ncurrent ministers of agriculture was informed by the need to carry his
\nvision through\u201d, the Presidency added.<\/p>\n
Relatedly, President Muhammadu Buhari defended the temporary closure of
\nthe country\u2019s land borders, saying that it had reduced domestic fuel
\nconsumption by 30 per cent. Buhari, who said there had yet to be any
\ndecision on when the borders would be reopened, said deep-rooted
\ndishonesty made the Federal Government to close the borders. He,
\nhowever, said farmers were among the biggest beneficiaries of the
\ngovernment\u2019s decision to close the borders, which had led to a
\nremarkable drop in the smuggling of goods, especially rice.
\nAcknowledging the efforts of farmers, Buhari said, \u201cFarmers must be
\nprotected. Dishonesty is deep-rooted in the country. Otherwise, the
\nborder closure would not have been warranted.\u201d Buhari was speaking in
\nDaura, Katsina State, when a delegation of Katsina State Elders Forum
\nvisited him at his country home. \u201cThe President said the country\u2019s
\ndomestic fuel consumption had dropped by more than 30 per cent,
\nfollowing closure of land borders\u201d, a State House statement by his
\nmedia aide, Mr Garba Shehu, quoted the President as saying. The
\nstatement added, \u201cThe President commended the actions taken by the
\nPresident of Niger Republic, Muhammadou Youssoufou, including the
\ndismissal of officials and a ban on use of the country as a dumping
\nground for Nigeria-bound smuggled goods. \u201cPresident Buhari noted that
\nthe measures taken by the President of Niger were helpful and
\nsupportive. \u201cPresident Buhari acknowledged the hardship of border
\ncommunities following the ban on sale of fuel at stations 20 kilometres
\nto the border, a restriction that also saw to the closure of all fuel
\nstations in his native home, Daura.\u201d<\/p>\n
He stated that the Nigeria Customs Service was reviewing all border
\noutlets in a bid to identify the illegal routes used for smuggling and
\nthose officially recognised for genuine transactions. \u201cPresident
\nBuhari told the delegation that he intends forging ahead with poverty
\nalleviation schemes and the agricultural and livestock reforms started
\nby the administration in the first term since the election was behind
\nhim and a government now in place. \u201cHe explained that the reforms,
\nespecially those relating to the settlement of livestock herders would
\ntake time to accomplish, assuring that his deliberate choice of tested
\nfarmers as his past and current ministers of agriculture was informed by
\nthe need to carry his vision through\u201d, the Presidency added.<\/p>\n
Meanwhile, the Federal Government said it had uncovered \u201chundreds of
\nfilling stations\u201d along Nigeria\u2019s Magama Jibia border with the
\nRepublic of Niger purposely set up for the smuggling of petroleum
\nproducts. The government identified fuel smuggling, illegal migration,
\nimportation of arms and ammunition and smuggling of rice from the
\nRepublic of Benin to Nigeria through Niger Republic as some of the
\nchallenges on the border communities. The Minister of Information and
\nCulture, Lai Mohammed, who led a high-powered delegation of the Federal
\nGovernment to Magama Jibia, Nigeria\u2019s border with the Republic of
\nNiger, said with the border closure, Nigeria had recorded 30 per cent
\ndrop in domestic fuel consumption.<\/p>\n
Then, there must a national reorientation for the people of this country
\nto consume only what they produce and focus on ways of helping the
\ngovernment to develop the domestic economy and wait for foreigners to
\nhelp them develop their own economy for them. The government too must
\npursue homespun economic philosophy that has direct bearing on the
\nsocio-economic wellbeing of the people. This is the way to go if the
\ncountry is to halt the import dependency syndrome and it is a good
\ndevelopment that the present administration is on the path already, and
\nthis will surely bear good fruits for the country.<\/p>\n
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…<\/p>\n","protected":false},"author":1,"featured_media":70069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-70792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\n