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N40bn lost yearly as smugglers, phoney investors hijack backward integration policy on rice

By BusinessNews Staff on December 30, 2014

Nigeria may be losing not less than N40 billion annually in the rice segment of the agricultural sector due to the activity of smugglers and individuals pretending to be investing in the local production and processing of rice.

THISDAY gathered at the weekend that as a result of the lapses in the implementation of the backward integration policy for rice in the course of the year, smugglers have benefitted to the tune of N20 billion.

Also, phoney investors in rice processing have been said to have pocketed N20 billion, posing as genuine investors and obtaining rice importation quotas which attract reduced taxes and levies.

According to market sources, the federal government has been hoodwinked into granting waivers indiscriminately under the backward integration plan, thereby promoting the activities of smugglers, while putting the rice backward integration policy under threat.

Under the backward integration policy, importation quotas which attract lower importation levies and taxes are issued out to genuine local rice processors or investors already putting verifiable investment into the local processing of the commodity.

[ThisDay]

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