Economy

Rice Smuggling: FG to Shut Border With Neighbouring Country

Published

6 years ago

June 19, 2018

Rice Smuggling: FG to Shut Border With Neighbouring Country

The Federal Government stated on Monday that it would shut Nigeria’s land border with a neighbouring country in few days’ time in order to halt the smuggling of rice into the nation.

Although it did not disclose the identity of the neighbouring country, the government stated that the nation in question had been extensively used for the illegal movement of foreign rice into Nigeria, a development that had impacted on the economy adversely.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who made the announcement at a leadership event for youths under the auspices of Guardians of the Nation International in Abuja, stated that the decision to close the land border had become necessary in order to encourage local production of rice and sustain the nation’s economy.

He said, “Our other problem is smuggling. As we speak, a neighbour of ours is importing more rice than China is importing. They do not eat parboiled rice; they eat white rice, and they use their ports to try and damage our economy. I am telling you now because in a few days, you will hear that the border has been shut; we are going to shut it to protect you, us and protect our economy.

“You will start seeing all sorts of negative things on the Internet. Let me tell you why we need to shut the border. I grow rice; I was the first Nigerian to mill rice free of stones. If you plant rice on certain parcels of land, some poisonous materials get into the rice.”

He added, “There are three kinds of water in their natural state; there is fresh water from the river, salt water from the sea, and blackish water. If you go to the delta in many countries, in South East Asia where they grow the rice, if you plant rice in the same place for like four to six years continuously, the quantum of arsenic begins to increase.

“Arsenic causes cancer and that is what they are dumping for us. Some people say they prefer Thai rice because they are very sophisticated; welcome to poison!”

When contacted to reveal the country being referred to by Ogbeh, the minister’s Special Assistant on Media, Dr. Olukayode Oyeleye, stated, “For him not to have mentioned the name of the neighbouring country in question is a strategic move.

“I believe when it is right to have the name mentioned, you will know. But for now, take it as he said. The fact remains that the country in question is Nigeria’s neighbour as he explained.”

Ogbeh stated in his speech at the event that the Federal Government had reduced rice importation by 95 per cent and increased the number of rice farmers from five to 30 million within a period of two years.

According to him, states like Anambra, Ebonyi, Kebbi, Kano, Jigawa and a few others are doing well in rice production.

Meanwhile, the Nigeria Customs Service on Monday expressed its readiness to enforce the closure of the nation’s border with neighbouring countries to check rice smuggling.

The Public Relations Officer, NCS, Mr Joseph Attah, said this in a telephone interview with one of our correspondents in reaction to the announcement by Ogbeh that the border with a neighbouring country would be shut in a matter of days because the unnamed country was serving as a conduit for the smuggling of imported rice into Nigeria.

According to Attah, the service is ready to enforce the planned closure of the border once it is announced by the Federal Government.

He stated, “We are very prepared to enforce the closure if it is announced. Once the border is closed, that is total blockade, and you don’t have any other reason to penetrate (Nigeria).

“We are prepared to enforce the fiscal policy of the Federal Government. We will enforce the closure, and if there is a need to get any of our sister security agencies to join in the enforcement, I am confident that they will be quite willing to join in the national enforcement.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

FIRS VAT Revenue Surges to N1.56 Trillion in Q2 2024 Amid Economic Struggles

Published

3 days ago

September 10, 2024

Samed Olukoya

The Federal Inland Revenue Service (FIRS) generated N1.56 trillion in Value Added Tax (VAT) in the second quarter (Q2) of 2024, according to the latest report from the National Bureau of Statistics (NBS).

This represents an increase of 9.11% compared to the N1.43 trillion reported in the first quarter of 2024.

A breakdown of the report showed that local VAT payments accounted for N792.58 billion of the total amount generated, while foreign VAT payments stood at N395.74 billion, and import VAT contributed N372.95 billion.

A quarterly analysis of the report revealed that human health and social work activities recorded the highest growth rate with 98.44%. This was followed by agriculture, forestry, and fishing with 70.26%, and water supply, sewerage, waste management, and remediation activities with 59.75%.

On the other hand, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84%, followed by real estate activities with –42.59%.

Sectoral analysis showed that the manufacturing sector contributed the most at 11.78%. Information and communication and mining and quarrying contributed 9.02% and 8.79%, respectively.

Nevertheless, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organizations and bodies with 0.01%, and water supply, sewerage, waste management, and remediation activities and real estate services with 0.04% each.

On a year-on-year basis, VAT collections grew by 99.82% from Q2 2023 despite ongoing economic challenges.

Nigeria’s inflation rate remains well above 30 percent, while new job creation is almost nonexistent.

Other key economic factors, such as investor sentiment, the purchasing managers’ index, and consumer spending, remain weak amid intermittent protests by citizens demanding improvements in quality of life.

Economy

Nigeria Sees 9.11% Increase in VAT Revenue, Generating N1.56 Trillion in Q2 2024

Published

4 days ago

September 9, 2024

Investors King

The federal government in the second quarter of 2024 generated a total of N1.56 trillion from Value Added Tax. This is a 9.11 percent increase from the N1.43 trillion in Q1 2024.

According to the National Bureau of Statistics report, local payments recorded were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

“On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and water supply, sewerage, waste management and remediation activities with 59.75%,” NBS reported.

“On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84%, followed by Real estate activities with 42.59%.

“In terms of sectoral contributions, the top three largest shares in Q2 2024 were
manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organisations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and real estate services 0.04% each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.”

Economy

Finance Minister Denies VAT Hike, Confirms Rate Remains at 7.5%

Published

4 days ago

September 9, 2024

Investors King

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Monday, debunked reports doing the rounds that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10% from 7.5%.

The Minister, in a statement signed by him, affirmed that VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

“The current VAT rate is 7.5% and this is what government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of government.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses to flourish.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun said