The Nation Newspaper

Tag: importation

  • ‘Why Fed Govt must ban fish importation’

    ‘Why Fed Govt must ban fish importation’

    Nigeria spends billions of naira yearly on fish importation, despite its huge marine resources. The Executive Director/CEO, Nigerian Institute of Oceanography & Marine Research (NIOMR), Dr. Gbola Akande, in this interview with OLATUNDE ODEBIYI,urges the government to ban fish importation to stimulate domestic production, as aquaculture can enhance economic  divesrification .

    How do we bridge the gap between fish supply and demand?

    Aquaculture is the only way to bridge the gap.  All we need is more campaign and awareness on the importance of people going into aquaculture or fish farming. If we embrace aquaculture, it would help to reduce pressure on the amount of fish that we import and also reduce pressure on fishing. With our current population estimated to be about 170 million, the demand for fish is about 2.6 million tonnes annually. Locally, we produce only about 800,000 tonnes and import about 800,000 tonnes of frozen fish; this adds up to 1.6 million tonnes annually. This leaves a wide gap of about a million tonnes.

    Aquaculture is the only way to bridge the gap between fish supply and demand. For this to happen, more people should go into aquaculture. Although fish farming in Nigeria has been on the increase, for it to contribute meaningfully to the protein needs of the country, we need more campaign and awareness on the importance of people going into fish farming. This will help to reduce pressure on the amount of fish that we import and also reduce pressure on artisanal fishing.

    How should the government intervene in aquaculture?

    One area of aquaculture that is critical is feeds and this is where government must come to our aid. In aquaculture, feed accounts for about 75 per cent of the overhead cost. This is why NIOMR has been involved in carrying out research to reduce the cost of feed by looking into ingredients that can make feed come at a cheaper price. For instance, NIOMR’s research into the use of maize with cassava for aquaculture feed has brought down the cost of feed, though not drastically. Another major component of fish feed is fish meal, which is being imported. In this regard, we are researching into using some fish which species are in abundance in our water, to convert them into fish meal, to also reduce cost of feeding.

    How would NIOMR integrate Small and Medium Enterprises (SMEs) into fish production?

    NIOMR yearly carries out training for SMEs on aquaculture, fish processing and marketing- which is the bone marrow of the future. Currently, catfish is the major aquaculture product that we have, and it can be said that catfish takes about 90 per cent of what we produce in aquaculture while the rest are tilapia and all other fish species.

    NIOMR is researching into various tilapia species, so that there will be no problem with their growth. This would help us to have a second candidate that farmers will also be able to culture and farm with ease. Our effort to increase fish production in Nigeria has also led us into instituting a scheme known as entrepreneurship in aquaculture for young potential fish farmers. The Institute has also formed fish farmers into innovation platforms which would enable us to have marketers, entrepreneurs, manufacturers and producers. The platform would help them to get better price for their produce.

    When you culture your fish, they do not come out equal. You could put 1000 fish in a tank, but all the fish will weigh differently. This is why the Institute came up with canning of cat fish, just like we have canned sardine and geisher. With this innovative platform, farmers may now can the smaller fish and sell the big ones. We have been canning catfish and tilapia which is our value addition to aquaculture as there will be choices to either have your fish fresh, canned or smoked. Value addition is critical for us because with more value on your product, you get more money.

    Nigeria is targeting agric as the arrow-head of its renewed economic revival plan. Where does your institute fit in?

    A lot of areas. For us to shift from oil to agriculture, it means we have to produce locally. One area that NIOMR has been working on is to discover fish species that can be used to produce fish meal as an alternative to imported fish meal; this is part of our effort to reduce the cost of feed. We have discovered the fish,. It is known as “Nectar Fish,” but we are still doing the preliminary studies. We have produced fish meal from this fish, and we have done the analysis of the protein, the fat, the moisture, the proximate composition and what the fish meal contains in terms of protein. We found out that the protein level is high- over 60 per cent. So, the next stage we are in is that we are undergoing is feeding trial to compare the fish meal produced from this fish with imported fish meal. If we can source the fish meal locally through this effort, that will be our own contribution to the economy.

    Another area is that in the ocean, we have another fish called ariomma fish species, which is a good replacement for titus and the sardine. We have located where those fish are in abundance and what we have done is to can the fish and do a comparative analysis between the ariomma fish species and the imported titus. Also, we have conducted research on and already gone into the culture of marine shrimps. We earn foreign exchange from export of shrimps but because of the quantity that we are able to catch, we do not get much. We are into research to enable us culture marine shrimps properly. Our aim is to have export potential in the nearest future, rather than just bringing in and not exporting.

    We also have plans to develop fish crackers which could replace prawn crackers being imported from China. Also, our smoked fish is a good product for export. Some people are exporting smoked fish. These are some of the things NIOMR is doing to support the Federal Government in its change programme – from a net importer to exporter.

    How can aquaculture be positioned as a major contributor to the GDP?

    Government should provide the enabling environment for the fishing industry to thrive. As the fish industry is today, some  people who are interested in it are not doing the business because of some of the problems in the Niger Delta and because we have the problem of pirates and militants to mention a few. In the past, the number of vessels that were operating in the country was between 200 and 250, but now this has reduced to less than 150. These are areas that government can come in.

    Another important step to take is that the Federal Government should totally ban importation of fish. This would help to protect our fish farms. There is no point importing fresh water fish since we have a lot of farmers investing in fish farming locally. If government bans fish importation, there will be massive cultivation of agric products and this would grow the economy. We have to produce what we eat locally, otherwise, we will run into problem and that is why this government is saying that we must produce what we eat locally. We need to sit down, look inwards and make sure that whatsoever we do has local content so that with time, there will be total ban of imported frozen fish, rice, tooth pick and other agricultural produce. If aquaculture takes its rightful place with the awareness we are creating, fish importation into the country is going to be a thing of the past because we are going to do massive aquaculture.

    What challenges do you face in carrying out your duties?

    Our major challenge is funding. Whether you are given enough money or not, research is a continuous exercise, but by God’s grace, this year’s budget is going to propel us to do more than what we have done in the past. This is because the projects we are going to have this year is enough for us to propel our research to a point that we will be able to say funding is not a major problem. The more money we get for the research, the better for us and, the more we can turn out more research results the more our findings. When we do research, we do not stop at research but, we take the research into a pilot level so that we will be able to tell interested entrepreneurs whether that project is viable or not.

    What are the latest innovations and researches by the institute?

    One major thing is that we have been able to solve the problem of catfish being underpriced from the farmers. That is why we are providing smoking klins that can smoke fish in a neat way so that the end of the day, they will get good price for their products. We have being able to use the smoking klins to assist farmers to add value to their fish and also to reduce fish excess which cannot be sold at a go when harvest is much.

    How do you fund your researches and projects? Do you depend solely on government’s subvention?

    Apart from the government budget, we have some projects that are externally funded. This year’s budget will be far better than what we got last year, and we will manage it judiciously to be able to achieve our targets and further justify the establishment of the institute.

    What are NIOMR’s targets?

    For this year, part of our target is to raise farmers as much as possible. We are going to produce a good number of smoking klins to spread all over the 36 states of the federation. For this year, we have targets on the number we are going to produce and we have targets to produce fingerlings that will be sold to farmers at subsidised rates. We also have plans to make all male tilapia fingerlings in order to boost a lot of aquaculture farming from tilapia. We are doing research to make sure that catfish can be bred all year round, because at certain points of the year, they don’t breed.

  • Fuel importation: ‘Banks don’t lend to most operators’

    Over 70 per cent of oil marketers eligible to import fuel are not doing so because banks are not lending money to them, the Chairman, Integrated Oil and Gas Limited, Captain Emmanuel Ihenacho, has said.

    He said banks were not lending to operators in the downstream because of paucity of funds and the inability of operators to repay with interest as agreed upon.

    He said the banks’decision to impose restrictions on lending has compounded the woes of indigenous oil and gas operators further as they have to operate at below the capacity level.

    He said: “More than 70 per cent of the operators in the nation’s oil sector want to import fuel in the wake of lopsided performance of the refineries, but unable to do so because banks have shut the window to advance credit to them for reasons best known to them. In view of this, the operators rely on fuel allocations or supplies from the Federal Government.“

    Ihenacho said the country needed to adopt and implement a policy that is geared towards making the refineries refine more crude oil in order to proffer solution to the perennial fuel crisis and its attendant problems in Nigeria.

    “There is a need for a paradigm shift from importing to refining in-country. This shift can only be made possible when more refineries are allowed to operate. Why can’t we encourage companies to establish more refineries to meet fuel needs of operators in the downstream sector and the consumers,” he asked.

    Ihenacho said lack of a workable operation plan is killing initiatives by the Federal Government to move the downstream sub-sector of the oil and gas forward, adding that to improve the downstream sub-sector, government needs to restructure it.

    He said deregulation of the downstream segment of the industry cannot be possible unless private entities invest in refineries.

    Ihenacho said subsidy is a drain on the government’s purse, stressing that trillions of naira have been paid as subsidies to fuel importers in the last few years.

    He urged the government to remove subsidies, and also provide environment that is conducive for private refineries to operate, adding that the idea would help in reducing the fiscal challenges, which the country is facing.

  • Oil firms to provide forex for petrol importation, says NNPC

    Oil firms to provide forex for petrol importation, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) yesterday said that companies  in the upstream oil and gas sector are to provide foreign exchange for the importation of petrol into the country.

    The Group Executive Director/Chief Operations Officer, Downstream, Mr. Henry Ikem-Obih broke the news after inspecting the sale of fuel at some Abuja petrol stations.

    This is coming as the NNPC announced that Nigeria’s three refineries will begin production this month.

    On measures to tackle the scarcity of foreign exchange for marketers in order to enable them import products considering the recent second quarter allocation given to the oil dealers, Ikem-Obih said: “As you know, forex was one of the prime reasons why we didn’t do well in the first quarter. Most marketers who had allocations could not import because they couldn’t access forex.

    “The minister has worked very closely through his own initiatives with the upstream oil companies. So, we have a number of them onboard with us and they will support the local entities and downstream companies.

    “They will help provide forex for the downstream companies to import and meet their PPPRA allocation. So, through the Central Bank of Nigeria, NNPC will support importation of fuel in the second quarter and the oil companies too will work with us. With this combined efforts, we hope we will be able to meet the import allocation for Q2.”

    Ikem-Obih also noted that Nigeria’s three refineries would begin production this month, adding that they would produce locally refined petrol.

    He said:  “Most of the work being done at the refineries are on site, that is, just getting them ready to start cracking crude so that they too can start contributing to the pool of the amount of fuel we have to distribute across Nigeria. We have to ensure that within the month that we have some local refining contributing to the amount of fuel we have to distribute across the country.

    “The work will be across the three locations and they are all at various stages of start-up. And in terms of moving them to their optimal yield, there is a lot of work going on and we are hoping that within this month of April we will also have locally produced fuel as part of what people are buying at the pumps.”

  • Senate seeks suspension of rice importation through land borders

    The Senate yesterday asked the Federal Government to suspend the lifting of the ban on importation of rice through the land borders.

    The Nigerian Customs Service (NCS) lifted the ban about two months ago to check rice smuggling.

    The senate’s action followed the adoption of the report of its ad-hoc committee on import duty waivers, concessions and grants.

    The committee said lifting the ban would lead to evasion of customs duty and maritime revenue losses.

    It also said lifting the ban would lead to increased diversion of vessels to neighbouring countries.

    The lower five per cent import levy on rice by some neighbouring countries the panel noted, is enough inducement, warning:  “If not checked, (it)  will on the long run lead to massive vessels desertion of Nigerian ports and the concomitant unemployment of Nigerians.”

    In lifting the ban, NCS said it would bring more revenue to public coffers, reduce  smuggling and the commodity’s price by breaking the monopoly of rice millers who have the capacity to import large consignment.

    On October 15 the senate debated a motion on the dangers posed by the removal of rice from the import restriction list and the re-introduction of import duty payment at land borders. It asked its ad-committee to invite customs Comptroller-General, Col Hameed Ali (rtd) to brief it on the reasons behind the new policy.

    The ad-committee headed by Senator Adamu Aliero noted that between 2010 and 2012, there were inconsistencies in rice imports fiscal policies.

    The policies, the committee noted, ‘led to frequent changes in levy payable on rice’ with conflicting opinions of the classification of Husked brown rice.

    It noted that because of this policies somersault the Customs, recommended the restriction of rice imports to the sea ports to monitor the commodity’s importation.

    The committee said because of this somersault, some importers exceeded their quota allocation, resulting in an outstanding duty of over N24 billion and subsequent suspension of the 2015 rice import quotas.

    It observed that the introduction of the 2014-2017 National Rice Policy has brought about stability in the tariff regime.

    The committee said though the NCS claimed to  be well equipped to monitor the land borders “the Customs Service failed to convince the committee of its ability to actually monitor the porous borders.

    “Therefore, the committee doubts their assumed capacity given previous record of collusion with smugglers. If the efficiency is there, prohibited frozen chicken and other contraband would not have flooded our markets,” the committee said.

    The committee said it discovered that any importer “that imports between five and 10 shiploads/vessel of rice into Benin Republic and destined them to Nigeria through the land borders already had predetermined motive to cheat Nigeria government of revenue through duty evasion.”

    According to the committee, there is no justification for importation of parboiled rice meant for Nigeria to be discharged at Cotonou and five per cent import duty paid on it.

    The commodity, it noted, is loaded into trucks and the importer pays N400,000 per truck at the Nigerian border and on arrival  pay another import duty of either 30 per cent or 70 per cent. “The committee does not see any logic in this.”

    Senate President Bukola Saraki described the matter as serious because it affects revenue generation and improvement of agriculture.

    He added that no genuine importer would prefer to import through the land border if there is no ulterior motive.

    Saraki said lifting the ban on land border importation of rice is definitely not in the interest of the economy of the country.

  • Fuel scarcity hits Lagos, Ogun as marketers shun importation

    Fuel scarcity hits Lagos, Ogun as marketers shun importation

    Fuel scarcity, which had disappeared since April, resurfaced yesterday in Lagos and some parts of Ogun State with long queues at several retail outlets.

    It was learnt that there was a huge supply deficit because some oil marketers refused to import the product, leaving only the Nigerian National Petroleum Corporation (NNPC) as the sole importer of premium motor spirit (petrol).

    A marketer told our correspondent in confidence that demand far outstripped supply, adding there were over 200 retail outlet owners who had paid for petrol in the last three months but could not get supply.

    The marketer said his colleagues told the NNPC that they did not have money, besides being owed over N200 billion in verified subsidy claims.

    He said this was why many marketers could no longer import fuel.

    “It is only the NNPC that currently imports, and its focus is on Abuja and Lagos. Other states have been experiencing scarcity in the last three months. Fuel trucks from such states have been flooding Lagos, creating pressure on supply. Some of the truck owners have paid for fuel in the last two to three months but have not been able to load.

    “Some depots sell to fuel truck owners at between N85 and N86 per litre instead of the regulated price of N77.66 per litre. So, it would not be a surprise to see some filling stations selling above the regulated pump price of N87 per litre,” he said.

    But NNPC’s spokesperson Ohi Alegbe debunked the claims.

    He said NNPC, through the Products and Pipelines Marketing Company (PPMC), had been importing and supplying marketers the fuel for distribution to consumers.

    Alegbe accused some marketers of sabotage to create the impression that there is scarcity.

    He said: “It is the NNPC, through the PPMC, that has supplied the nation premium motor spirit (PMS) over the seasons. PPMC has sufficiently wet the country with fuel and we have more than enough stock to go round. The Department of Petroleum Resources (DPR) has been advised to ensure that marketers don’t divert or hoard products.

    “We use our depots in other states. Therefore, to state that we focus on Lagos and Abuja is incorrect. To frustrate the efforts of the government, some of the marketers deliberately refuse to dispense fuel to create artificial scarcity.”

    He said there was a contention about subsidy and the controversy over volume of PMS consumed across the country.

     

  • Lagos takes steps to reduce rice importation

    Lagos State is supporting the Federal Government to bring down rice importation  which is draining foreign reserve, Governor Akinwumi Ambode has said.

    Ambode, who spoke during the 2015 World Food Day celebration, said the state consumes over 50 per cent of national rice demand which is put at over two metric  tonnes valued at N365 billion.

    Represented by Permanent Secretary, Ministry of Agriculture, Dr Yakub Basorun, the governor said to meet the national demand put at two metric tonnes, 90 per cent is imported from other countries which constitutes a drain on the nation’s foreign exchange reserve while thousands of youths are roaming the streets unemployed.

    Against this background, he said the state and Kebbi have decided to collaborate to develop the rice value chain.

    He said: “While Kebbi State is one of the highest producers of paddy rice in Nigeria, Lagos is undoubtedly the highest consumer of milled rice with ultra-modern rice processing facilties in agro industrial estates located at Imota in Ikorodu Division.”

    To boost processing, he said the state plans to establish more rice processing facilities in collaboration with the private sector. This, he expressed, also, will help to create more job opportunities for the people.

    He also said the government is working towards providing facilities so as to boost agricultural productivity.

    He said the state plans to give incentives to farmers as part of a long term strategy to improve food supply chain. One of the strategies is to provide incentives and inputs to enterprising residents, including the farm estates in Ikorodu, Epe and Badagry.

    In furtherance of the policy of making arable land farming, he said the state has acquired land in Ogun,Osun and the Federal Capital Territory with a view to allocating plots of land to interested farmers who will sign off-take agreements with the state government in this regard.

    Increased food production, he believes could help the nation reduce its dependence on imported foods.

  • ‘Importation of poultry products must stop’

    Poultry farmers have decried the importation of frozen poultry products into Nigeria and are advocating  a stop to the trend.

    The Chairman, Poultry Association of Nigeria (PAN), Plateau chapter, Mr John Dasar, expressed concern at a sensitisation workshop organised for stakeholders. Dasar explained that the health hazard of consuming such imported poultry products was high.

    The workshop themed: ‘’Economic and Health Implications of Smuggled Poultry Products’’, was jointly organised by PAN, National Agency for Food and Drug Administration and Control (NAFDAC) and the Nigeria Customs Service (NCS).

    The chairman said the rationale behind the workshop was to sensitise the public to consume only wholesome poultry products reared locally in Nigeria.Dasar said the major bane of the poultry industry  was the unwholesome smuggling of frozen poultry products despite the ban by the Federal Government.

    According to him, the total fight against this illegal activity would not only make the industry experience rapid growth, but would create more jobs for the teeming youths.

    ‘’The importation of these poultry products into Nigeria is really killing our business and it is also a major drawback for the industry.If we are able to totally stop the consumption of imported poultry products, the local industry, within a short time, will thrive. It will create a lot of jobs for the unemployed.

    ‘’So, we will not sit down and allow things go wrong; we stand firmly to ensure that this ugly activity is nipped in the bud,’’ he said.

    In a keynote address, NAFDAC’s Director General, Dr Paul Orhi, represented by Mrs Josephine Dayilim, said the consumption of imported poultry products has high health implications. She said the buying of smuggled products does not only encourage economic sabotage, but  damages the human system, hence warned the public to desist from consuming it.

    Commending the chapter for organising the sensitisation programme, PAN national president, Mr OnaloAbbah said the chapter was the first in the North-Central zone to replicate the campaign against the importation of smuggled products.

    The president said the poultry industry in Nigeria was doing well, as it was the largest producer of eggs, but however, decried the activity of smugglers.

    ‘’We must collectively fight this menace, package our local products with some sense of decency, otherwise we will continue to go down the drain,’’ he urged.

    Abbah further charged poultry farmers to take bio-security measures very seriously so as to save the industry from total collapse.

    In  a goodwill message, Co-Chairman, Plateau  House Committee  on Agriculture, Peter Ibrahim,   assured the farmers that the Assembly would enact laws that would enable poultry business remain viable in the state.

  • ‘China’s crude oil importation from Nigeria steady’

    chinese Ambassador to Nigeria Gu Kiaojie has said his country’s crude oil importation from Nigeria has been steady in the last five years.

    Gu told the News Agency of Nigeria (NAN) that contrary to insinuations, “China’s oil import from Nigeria remains steady”.

    “For the past four to five years China has never reduced the volume of crude oil importation from Nigeria, the volume remains stable,” he stressed.

    The Chinese envoy, who described the current trend in the crude oil market as a global phenomenon, said the global oil market was weak.

    He blamed the trend on weak global economy and the market forces of demand and supply, though he admitted that China was not a major crude oil importer in the world.

    “China steadly purchases between two to three per cent of total global Nigerian crude oil export”

    He advised Nigerians to redouble their efforts in looking inward and see what they can produce locally rather than relying on importation.

    Besides crude, Gu also said China imports commodities as iron ore, soya beans from Nigeria on a regular basis.

  • Tambuwal advocates no waiver for rice importation

    Tambuwal advocates no waiver for rice importation

    Sokoto State Governor Aminu Waziri Tambuwal has observed that local rice production is being hampered by the current waiver enjoyed by importers of the commodity, calling on the federal government to phase it out.

    The governor spoke yesterday in Sokoto when he received the new Customs Area Controller for Sokoto, Zamfara and Kebbi states, Alhaji Muhammad Kabir while on a courtesy call on him in his office.

    According to Tambuwal” the current waiver regime being enjoyed by rice importers is grossly hampering local production of the commodity and should be phased out.”

    He noted that preliminary studies undertaken showed that despite efforts to boost local rice production, unfavourable government policies especially with regards to waiver to importers, coupled with other policies, is proving to be impediment to states’ objectives to achieve local self-sufficiency.

    Tambuwal further reiterated the fact that the quality of rice produced locally is of international standard and far better than many of the ones imported into the country.

    He said the state government will continue to support farmers in rice producing areas by ensuring that they  acquire standard modern facilities that will process their produce.

  • Governor warns against ban on rice importation

    Jigawa State Governor Muhammadu Badaru Abubakar has cautioned against the ban on importation of rice and other essential commodities.

    He spoke yesterday in Dutse when receiving the state chapter of the Nigeria Labour Congress (NLC).

    Abubakar warned the Federal Government on the effect of the ban on Nigerians, especially workers.

    He said the ban on rice required diligence and in-depth analysis of the possible repercussions, to avoid weakening the purchasing power of the people.

    According to him, the economy and the danger of relying on oil as a source of revenue necessitated the need for a review of the policies that hindered the take-off of the diversification of the economy.

    The governor, who identified agriculture as a solution to the economic woes facing the country, said: “Unless we prioritise agriculture, the future is bleak.”

    Abubakar noted that over- reliance on oil revenue was risky, “especially now that developed countries, such as the US, are investing in the discovery of renewable energy.”

    He went on: “The current reality is that the oil prices are shrinking and they will shrink further when looking at Iran’s possibility of pumping over one million barrels next month. So, the earlier we start looking for a solution, the better.”

    The NUJ Chairman, Comrade Usman Yau, said they visited the governor to thank him for the increase of five per cent in the annual leave and transportation grants of civil servants.

    He noted that the gesture showed that Abubakar was a man of integrity.

    Yau said besides the five per cent increment, the governor was the first to pay workers’ salary in June, even before the release of the Federal Government grant.