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Terminal operators decry diversion of rice laden vessels

By BusinessNews Staff on April 11, 2014

THE Seaport Terminal Operators Association of Nigeria (STOAN) has decried the continuous diversion of ships laden with rice to the ports of neighbouring countries.

Chairman of STOAN, Princess (Dr.) Vicky Haastrup, said in Lagos that no fewer than 150 shiploads of rice have been diverted to the ports in Benin Republic, Cameroon, Accra and Togo in the first quarter of this year.

She said Nigeria lost about 600,000 metric tonnes of rice between January and March 2014 to the neighbouring ports due to the 110 per cent policy slammed on the commodity by the Federal Government early 2013.

“This is becoming rather unfortunate, our economy is bleeding seriously because of this policy.

“The loss to other countries, as a result of the high tariff on rice was over N300 billion last year while in the first quarter of this year alone, both government and private operators have lost at least N80 billion.
“Even the Federal Government through Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, admitted the shortcoming of this policy.

“The truth is that the policy has done more harm than good to our economy and government should waste no further time before reversing it,” Haastrup stated.

According to her, revenues affected by the 110 per cent rice policy include those of the Nigeria Customs Service, terminal operators, dock workers and the Nigerian Ports Authority (NPA).
Haastrup also disagreed with those who blame Customs for the high rate of smuggling of rice into Nigeria.

“It is totally wrong to blame Customs. Customs is doing its very best under the circumstance to check smuggling of rice into the country and that can be seen from the numerous seizures they make every day.

“The fact of the matter is that the policy cannot work, even if you place heavily armed Customs officers in every corner of our borders, it won’t stop smuggling.

“It is a fact that local production cannot match local demand which creates a recipe for smuggling.

“There is a lot of pressure on Customs because the quantity of rice manufactured locally can only satisfy 30 per cent of local demand.
“It is easy to point accusing fingers but I believe Customs officers are giving their best.

“And don’t forget that our neighbouring countries are profiting from the policy by dropping their own tariffs on rice and because they are benefitting, they give tacit support to these smugglers,” the STOAN Chairman said.

[Vanguard]

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