Indeed, the country may continue to lose an additional N20 billion to smugglers of the commodity, except the Federal Government addresses the yawning gap under its backward integration plan for the rice industry.
The latest development may have put the investment of committed stakeholders in the sector under threat as a result of the indiscriminate concessions and waivers to unwilling and non-committed stakeholders under the backward integration policy.
A letter from the Minister of Agriculture and Rural development, Dr. Akinwunmi Adesina, to the Coordinating Minister of the Economy, Dr.Ngozi Okonjo-Iweala, a copy in possession of Daily Sun, on the allocation of rice import quotas, noted that the criteria for allocation of quotas under a methodology, which assigns weight to key criteria of self-sufficiency in rice production and milling in Nigeria include the submission and approval of a Domestic Rice Production Plan (DRPP) among others.
Adesina, in the letter explained that, a supply gap of import-grade rice was determined to be 1.5 million metric tonnes for 2014 while an inter-ministerial committee discussed the methodology for allocation of the import quotas. ‘‘Subsequently, a letter was sent to existing rice millers and new investors, to submit a DRPP, and based on their submissions; a total of 1.3 million metric tonnes of rice import quotas was issued to 25 qualifying millers at the preferential levy of 20 per cent and duty of 10 per cent. The remainder, 0.2 million metric tonnes of rice imports will be at the higher levy of 60 per cent and duty of 10 per cent for other rice importers,” the letter read in part.
Stakeholders in the rice industry, however, believe that the indiscriminate approach of the Federal Government in granting waivers and import allocation quotas to investors, who have no investments in the industry, either in form of paddy or rice milling may be a
dysfunctional approach to the backward integration plan in the sector.
Investigations also show that many of the investors, who got the
import allocation quotas were already trading it to interested
stakeholders at between 60 to 80 per cent levy having got the same at
20 per cent levy.
Regrettably, the documents further showed that new investors without
milling capacity or investments in the country received the highest
quota of the allocations, while millers did not receive allocations and in some instances, received very low allocation.
With at least $183.6 million enjoyed in bonds, stakeholders have
begun to question the sincerity of government under the backward
integration plan, considering the fact that investors who have only
expressed interests enjoy higher imports than those who have remained
committed to the plan.
Similarly, they have raised questions on the composition of the
inter-ministerial committee and strategy deployed in arriving at the
supply gap considering that about three million metric tonnes of rice
was smuggled from Cotonou in 2013, while an estimate of 1.5 million
has been accounted for in 2014.
Furthermore, with President Goodluck Jonathan approving the
backward integration policy plan in May 2014, the stakeholders have
raised concerns on the delayed implementation of the policy till
December.
The list of beneficiaries of the preferential import quotas, quantities of rice imports approved and corresponding size of performance bond to be submitted shows that of the 28 beneficiaries, only 16 have mills, while the remaining 12 have no mills and account for higher imports than millers.
However, documents obtained by Daily Sun showed that the supply gap estimate is
unrealistic when compared to a total of 2.74 million metric tonnes of
imported rice that made its way into the country in 2014 (representing
a combination of rice imported into the country and the smuggled
commodity from neighbouring West African countries).
Stakeholders in the rice industry believe that the indiscriminate
approach of the federal government in granting waivers and import
allocation quotas to investors who have no investments in the
industry, either in form of paddy or rice milling may be a
dysfunctional approach to the backward integration plan in the sector.
2015 elections:/mac hd
2015 elections: EU-Nigeria sign MoU
From AIDOGHIE PAULINUS, Abuja
In view of the forthcoming 2015 elections, the European Union (EU) and the Federal Government, yesterday
signed a Memorandum of Understanding (MoU) on the monitoring of the elections.
The event, which took place at the Tafawa Balewa House, Abuja, had in attendance the Permanent Secretary,
, Ministry of Foreign Affairs, Ambassador Danjuma Sheni, who signed on behalf of Nigeria, while the Charge
d’Affaires of the EU Delegation to Nigeria and the Economic Community of West African States (ECOWAS),
Mr. Alan Munday, signed on behalf of the EU.
In his remarks, Sheni said Nigeria welcomed the EU as observers of the forthcoming elections because of
the importance of neutral observers in the electoral process.
Sheni noted that such observers lend credibility to and legitimacy of the elections, saying that was precisely
the reason Nigeria was willing to sign the MoU with the EU delegation.
While saying that the EU observed the 2011 elections, which he said was declared one of the freest and
fairest elections in Nigeria, Sheni stated that the Chairman of the Independent National Electoral Commission
(INEC), Prof Attahiru Jega, has confirmed that the 2015 elections would be conducted under the best
international practices.
“We, therefore, count on our partners to continue to assist INEC to live up to its place as clearly expressed
by the chairman,” Sheni said.
Speaking further, Sheni said Nigeria valued the presence of international observers in its elections since it
was one of the pillars of strengthening democracy worldwide.
“I want to stress that Nigeria is committed to having free, fair, credible, transparent and peaceful elections,”
Sheni declared.
On his part, Munday said the reason why the EU was willing to observe elections in partner countries each
time it was invited was due to the fact that democracy is the cornerstone of the EU.
“We support democracy in all our partner countries where they wish to, and in the case of Nigeria, in a young democracy, to strengthen the democratic process, the democratic principles,” Munday said.
While noting that the objective of any observer mission was not to criticise, Munday stated that it was to deliver an independent report to the authorities of the inviting countries, with a view to, in the future, if there are things that could be made better, to again improve the democratic processes.
CREDIT:THE SUN
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