Babatunji Wusu –
The Nigeria Customs Service has confirmed that rice is still a restricted product in spite of the recent decision to ease the ban on using foreign exchange for its imports and the spike in price.
Despite local production efforts, the price of rice, a mainstay in the Nigerian diet, has increased noticeably. Depending on where you buy it, a 50 kilogram bag of rice currently costs between N55,000 and N60,000.
Despite local rice production and the recent approval for the use of foreign exchange for rice imports, this is a substantial increase above the around N30,000 price for the same bag from a year ago.
The Nigerian Central Bank lifted the restriction preventing importers from obtaining foreign currency for 43 products, including rice.
The Central Bank of Nigeria’s pronouncement had many Nigerians expecting that the price of rice, especially the imported types, would drop. However, the price of this staple has risen instead of falling.
Although domestic rice producers blame the growing pricing on the high production costs, it has come to light that imports are still limited because of Nigeria Customs Service restrictions.
According to the Nigeria Customs Service, rice is prohibited and would be seized if it is entered across the nation’s land borders. It stressed that rice’s position as a restricted product remained in place even after the Central Bank of Nigeria lifted the foreign exchange ban on 43 commodities.
“What is the relationship between the removal of forex on restricted items, vis-a-vis fiscal policies of the government? They are different things. Rice is a restricted item. So, if it is a restricted item, it remains restricted,” the NCS spokesperson, Abdullahi Maiwada, told Saturday PUNCH.
He continued, “There is a difference between restriction and prohibition. And there is a difference between absolute prohibition and prohibition by trade. Somebody who is in tune with how these import and export processes are done must know what these terminologies are.
“How many tonnes of rice do we produce in Nigeria? Those are the things to find out, not to ask me why the price is going high. Rice is a restricted item, and that is why it is being intercepted.
“If you import rice through the land border, it will be confiscated because it is a restricted item. The way vehicles cannot come in through the land border is also how rice cannot come in through the land border.”
Maiwada emphasized that the government’s restrictive policy on the commodity remained unchanged. He stated that any alteration in policy would be communicated to the public by the customs service.
He said, “If there is a change in policy, we will tell you. If today the government says vehicles can come in through the land borders, we have to inform you by telling you that the government has lifted the ban restricting the importation of vehicles through the land borders, and you can then import vehicles.
“Also, some people are talking about frozen poultry products, and these are products under the import prohibition list. Go and check our website, see the import and export prohibition list, and you will see that live birds and poultry products are under the prohibition list.
“He clarified that the Nigeria Customs Service does not have a role in determining the market prices of goods, adding that “Customs is only responsible for the implementation of fiscal policies.“
