Worried about the large volume of accruable revenue and jobs lost due to rice smuggling, a  business group, Rice Importers, Millers and Distributors Association of Nigeria (RIMIDAN) is calling on the Federal Government to  save the sector from going down  like the textile sector.

Speaking in Lagos last week, the Chairman of the Group, Alhaji Muftau Gbadamosi, and the Director, Food Tree Industry Limited, Chief Boniface Uche Obum, disclosed that the Group decided to make the clarion call because if the  ban  on entry of all rice products from land borders are not enforced, the present economic sabotage and trade malpractices associated with smuggling would make the sector to run into billion -naira debts because members have lost four or more companies to the harsh economic environment created by the smugglers.

 Some of the rice millers namely  Veetee Nigeria Limited, Stallion Group, Dana Group and Olam Nigeria Limited have been rendered unproductive with over 400 jobs lost.That is why the group, according to Gbadamosi and Obum decided to send a save our soul message to government to save the sector from losing all their investments.

Stressing how government is losing the N18 billion, Gbadamosi and Obum  explained that duty payable for 600,000 metric tons of rice at a bench mark of $640 and an exchange rate of $150 is about N18 billion. This is the expected revenue that should have come from the land borders if all things are equal. This further shows that for every bag that enters the country through this illegal means, the Federal Government losses N1, 500 while the smugglers make over N1000 per bag.

 Other members of the team, including Mr. Krishnaswami Venkat, of Olam, called on government to ban importation of rice through land and make the importation restricted to sea ports through which the importation would be properly managed, saying we have no alternative than to suggest to the Nigerian government to ban the importation of rice through Nigerian land borders as is the case with frozen foods. Rice millers, importers, Nigerian ports and terminal operators, dock workers, transporters, clearing agents and others are losing considerable revenue, business and jobs due to this unscrupulous trading. Shipmen of rice into the country through the seaports can be tracked for data and revenue.

The trio explained that millions of investments made by the members of the group through bank loans for milling factories are wasting away as they have not been able to utilise the money or generate the money for repayment of the loans.

‘Millions of investments made by our members in terms of milling factories, are wasting away and if this situation continues their bankers, foreign partners and the whole investment will be in problem, this is addition to laudable effort being made in rice farm plantation, all this projects are identifiable and ban be visited. 

Gbadamosi, Ubom and Venkat, appealed to government to focus more attention in agricultural sector with special interest in rice production and added that because of the acceptability of rice by Nigerians as one of the stable meals,  focusing on it would help to increase number of employments in the country.