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.
*** Written by Jide Ayobolu.
