Nigeria aims to checks rice-smuggling and economic implications of border closures
Nigeria is hoping to check the menace of rice smuggling with a partial closure of its western border with the Republic of Benin. To discuss the wider implications of this move are Tilewa Adebajo and Richard Ogundele.
Tue, 03 Sep 2019 08:41:53 GMT
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AI Generated Summary
- Nigeria is a leading global rice producer but faces challenges meeting local demand due to a shortfall of 3.5 million metric tons annually.
- The nation is pursuing an import substitution industrial strategy to boost local production, reduce reliance on rice imports, and potentially export to neighboring countries.
- The partial border closure with Benin aims to curb rice smuggling and enhance food security, but there are concerns about economic implications and the need for effective management and investment in the agricultural sector.
Nigeria is embarking on a mission to combat the significant challenge of rice smuggling with the partial closure of its western border with the Republic of Benin. The move comes as the country aims to reduce its reliance on imports and enhance its local production capabilities to meet the high demand for rice within its borders. According to Tilewa Adebajo, CEO of CFG Advisory, Nigeria is currently a top 20 rice producer globally, ranking number 17 and generating around 4 million metric tons of rice annually. However, the nation's consumption surpasses its production, with a shortfall of about 3.5 million metric tons. To bridge this gap, Nigeria is implementing an import substitution industrial strategy in a bid to boost local production and potentially export to neighboring countries in the West African subregion. This approach is part of a broader effort to enhance food security and reduce the reliance on foreign exchange for rice imports. While the partial border closure aims to curtail the influx of smuggled rice, it also raises concerns about potential economic implications and the need for comprehensive management and investment in the agricultural sector.
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