President Muhammadu Buhari’s bid to rejuvenate local production of goods and services through the Central Bank of Nigeria’s, CBN, decision to ban 41 items from accessing Forex, aside other restrictions, has reached a dead lock, as Nigerians have now devised other means of staying in business.
According to a report published by The Economist, a United Kingdom, UK, based newspaper, smuggling in Nigeria has marginally increased from neighboring countries. The report noted that Nigeria is presently awash with contraband products.
According to a latest survey by Chatham House, at least 70% of trade between Africa’s biggest economy and its neighbors goes unrecorded. According to a World Bank report in 2012, Nigeria loses an estimate of N2 billion worth of textiles to smuggling every year.
A fashion retailer, Adamu Muhammad, said his syndicate brings goods in through Cotonou, Benin’s main port and commercial capital, then through Niger, and across Nigeria’s border.
According to him, for a decade the convoys of up to 50 of the syndicate’s vehicles have rattled into Kano without obstruction, because bigwigs in the capital were paid to let them pass
A full loaded lorry attracts a fee of up to N1 million Mr. Muhammad said. In return, “Everyone is settled from Niger to Kano.” Despite efforts by the Custom boss, Hameed Ali, a close Ally to President Buhari, smuggling has continued, as corruption is now rampant and tariffs are high.
Import bans on items including rice, carpets, among several others which were supposed to have protected local businesses, are instead pushing trade underground.
Mr. Muhammad, noted that women now cross into Nigeria carrying rice on their heads, while he also specialized in deliveries of cooking oil and pasta, the import of which is supposedly banned. World Bank had in 2010 said Nigeria’s annual revenue loss through smuggling was $200 million.
The Customs Boss had in January, 2016 blamed their poor performance in revenue generation to CBN policy on forex. He noted that lifting the ban of all rice imported through land borders would attract the prevailing import duty of 10 percent with 60 percent levy.
World Bank, while advocating for a reversal of the CBN policy said, such will lift 4 million Nigerians out of poverty. According to The Economist however, history shows that this approach has never worked. Source post-nigeria.com
According to a report published by The Economist, a United Kingdom, UK, based newspaper, smuggling in Nigeria has marginally increased from neighboring countries. The report noted that Nigeria is presently awash with contraband products.
According to a latest survey by Chatham House, at least 70% of trade between Africa’s biggest economy and its neighbors goes unrecorded. According to a World Bank report in 2012, Nigeria loses an estimate of N2 billion worth of textiles to smuggling every year.
A fashion retailer, Adamu Muhammad, said his syndicate brings goods in through Cotonou, Benin’s main port and commercial capital, then through Niger, and across Nigeria’s border.
According to him, for a decade the convoys of up to 50 of the syndicate’s vehicles have rattled into Kano without obstruction, because bigwigs in the capital were paid to let them pass
A full loaded lorry attracts a fee of up to N1 million Mr. Muhammad said. In return, “Everyone is settled from Niger to Kano.” Despite efforts by the Custom boss, Hameed Ali, a close Ally to President Buhari, smuggling has continued, as corruption is now rampant and tariffs are high.
Import bans on items including rice, carpets, among several others which were supposed to have protected local businesses, are instead pushing trade underground.
Mr. Muhammad, noted that women now cross into Nigeria carrying rice on their heads, while he also specialized in deliveries of cooking oil and pasta, the import of which is supposedly banned. World Bank had in 2010 said Nigeria’s annual revenue loss through smuggling was $200 million.
The Customs Boss had in January, 2016 blamed their poor performance in revenue generation to CBN policy on forex. He noted that lifting the ban of all rice imported through land borders would attract the prevailing import duty of 10 percent with 60 percent levy.
World Bank, while advocating for a reversal of the CBN policy said, such will lift 4 million Nigerians out of poverty. According to The Economist however, history shows that this approach has never worked. Source post-nigeria.com
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