The Nation Newspaper

Tag: ‘smuggling

  • CBN goes tough on smugglers of textile materials

    The Central Bank of Nigeria (CBN), Monday in Katsina went tough on smugglers of Textile materials and their accomplices, threatening to blacklist individuals, banks and corporate bodies found to be encouraging the practice in any way.

    The CBN Governor, Mr. Godwin Emefiele who made the above declaration Monday during the official flag off of the distribution of seeds and other inputs to cotton farmers in Katsina state for the 2019 planting season, under the auspices of the National Cotton Association of Nigeria, further lamented the country’s annual loss of more than $2.2 billion or over N790 billion to the smuggling of textile goods and called on stakeholders to work at reversing the trend.

    He described the launch as representing a milestone event being part of the measures bank along with other stakeholders including the Federal Ministry of Agriculture and Rural Development (FMARD), have embarked upon in order to revive Nigeria’s Cotton, Textiles and Garments Sector.

    He said “I believed that the Central Bank ought to play a more important role in supporting Nigeria’s economic development, given the constraints faced by rural farmers, SMES and Manufacturing companies. More importantly, we believe that CBN’s intervention which is aimed at import substitution will help in conserving scarce foreign exchange for Nigeria”.

    He maintained that President Muhammadu Buhari placed considerable emphasis on addressing impediments to the growth of Nigeria’s Agricultural and manufacturing sectors, as both sectors represent over 52% of Nigeria’s GDP.

    Emefiele also announced that the Apex bank is gathering data about, and investigating the accounts of individuals and corporate bodies’ currently involved or encouraging smuggling and dumping of textile materials into the country.

    He said the investigation would be extended to the 42 other items restricted from FOREX in Nigeria, and that names of individuals and companies found wanting would be publicized, and blacklisted.

    He added that all the banks in the country would be barred from conducting any banking business with the companies, their owners and top management.

    The Governor of Katsina State, Aminu Bello Masari, in an address at the occasion noted that the state formerly produced about 65% of the total quantity of cotton produced in the country

    He said “the decline of agricultural produce including cotton over the years in Katsina state has been a source of concern to this administration because the glorious days of cotton production had provided employment to our populace”

    He said the state government will continue to provide the needed incentive to Agriculture including funding infrastructure and farming inputs.

  • No end to smuggling of used tyres 

    Despite government efforts to curb the smuggling of used and substandard tyres into the country and the associated dangers, it appears the trade has deferred all efforts and the tyres still enter the markets in their large numbers, reports Charles Okonji

    According to experts, used or substandard vehicle tyres portend great danger to the motoring public. Recent statistics from the Federal Road Safety Commission (FRSC) indicate that between 2012 and 2017, tyres were responsible for 5,562 vehicle road crashes in the country.

    Further analysis of FRSC statistics showed that in 2016, there were 2,486 vehicles using about 10,024 used tyres. Out of this number, 39 percent of the tyres are not expired while 61 percent are expired. New tyres constituted 50 percent while, 35 percent are fairly used tyres with the remaining 15 percent as re-bore tyres, while 9 percent are complete worn out tyres as against 91 percent that are not complete worn-out.

    Common dangers of used or substandard vehicle tyres include tyre busts, puncture chances, worsened grip, brake weakness and increase chances of aquaplaning (hydroplaning by vehicle tyres).

    Irrespective of the above dangers, used and substandard vehicle tyres are still smuggled into the country in their droves every day and sold openly in the nation’s markets.

    As at 2018 Standards Organisation of Nigeria (SON), the federal agency that enforces product quality control in the country disclosed that only two Chinese nationals, Taolung Shen and Xu Yan sold over N5b worth of substandard tyre in the country within one year, indicating that business is lucrative to smugglers and at such, will not give in cheaply.

    SON says whether used or unsued, tyre expires five years from the date of manufacture. Adding that though most of these substandard tyres may not have been used, but they are classified as substandard once the tyre is five years old from the manufacturing date.

    SON says it destroyed used tyres worth over N50 million recently in Enugu alone.

    Speaking with The Nation, Director of Media and Publicity, SON, Bola Fasins says used tyres is costing the country huge economic loss as well indiscriminate loss of lives to the extent that government ignore but to put more stringent measures to curbing the illicit activity.

    He disclosed that SON’s concern is about the quality of products including tyres, lamenting that in terms of quality, there are no standards for used tyres.

    “The only kind of product in Nigeria for which you can talk about some criteria for used ones are auto-mobiles. But for tyres, there is no standard for used tyres. So every used tyres as far as we are concerned is substandard.

    “And by Nigerian import procedures they are contrabands, they are not things that concern us, you know at the point of entry because they are not even supposed to enter at all because they are contraband. They are not allowed to be imported, so if they come in and those who say maybe due to cross border may have some point, you know, I would rather say more to illegal entry point which are all over the place particularly the round borders, but our focus is on the quality of new tyres whether locally manufactured or imported,” he stressed.

    He has a word of advice to importers of such products. According to him, SON is now better positioned to deal with their products under the SON-CRAP regime and the offshore conformity assessment program. The program is aimed at checkmating them by confirming their quality status before importers of such products can even make payment for them from Nigeria. This according to him, is because the program will ensure that until a product certificate is issued confirming the quality status, it remain unacceptable in Nigeria, and you can’t even open a Form ‘N’ because a product certificate is needed to be attach to the form ‘N’ before any bank can open any letter of credit for for payment.

    “That is for imported ones. As at today, there is no local tyre manufacturing company in Nigeria. So what we have is beyond the issue of the certification offshore, we also put them all under our registration procedure. So, that is how we monitor what is in the market.

    “Like I said, we don’t have standard for used tyres, so there is no criteria for checking standard of used tyres, every used tyre is substandard. The reason is that tyres have specifications, tyres also have life span. From the day of manufacture, tyres cannot last beyond five years whether used or unused,” he disclosed.

    The SON director flayed the much touted ignorance of the motoring public on the dangers of used tyres, saying anyone that can afford a vehicle should equally afford new quality tyres.

    “I don’t subscribe to the issue of ignorance; anybody who can afford an auto-mobile can afford to buy new tyres. There is no vehicle that you are going to buy that will cost you nothing less than N800,000. Let me emphasise that for the worst kind of used-car or second-hand or third-hand car, you will be paying in hundreds of thousands. How much are new tyres, so there is no issue of ignorance, people do it knowing what they are doing. It is penny wise, pound foolish. Everybody who can afford an auto-mobile can afford new tyres,” he stated.

    On commercial vehicle operators, particularly those operating within the metropolis, he described the act as unfortunate. Saying that it is even more reggretable that they make use of third-hand tyres (those already discarded with the vulcaniser).

    “What that tells you is that used tyres are not only imported, they are also generated from within and that is where the education of stalk-holders needs to be improved upon. If you have used your new tyres and they have spent their life span, tear them off; don’t drop them for any vulcaniser because they will sell them off. It is our collective responsible that everyone of us ensure that those tyres cannot be recycled. So it is not only about importing them, we also generate used tyres from within,” he admitted.

    In his submission, the Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf noted on the contrary that the first problem is the capacity for enforcement.

    “I think that is the major issue because tyres are not small licenses. So, the country should have the will and the capacity to enforce, because enforcement is key to preventing the importation of used tyres.

    “The second point is the cost of new tyres. Majority are struggling to put their vehicles on the road whether personal vehicle or commercial, and when people struggle they look for what they can afford, even when it is very risky. You know, they want to manage than go for a new tyre. But when people don’t have much choice they fall back on used tyres, so if the disparity between the new and the used is too wide it could also create that kind of incentive, but what is most important way to curb the menace is effective enforcement.”

    The LCCI Bose stated that the government should find a way of bringing down the cost of new tyres, arguing that if the tariffs on the new tyres are too high, it should be brought low to encourage its patronage.

    “In fact there was a time they even put it on list of 41 items prohibited, I don’t know if they have removed it. That also creates problem for those who are in the business of importation of tyres. And in the medium to long term, we used to have Dunlop and Michelin that were producing tyres in Nigeria.

    “If they produce it here, I think perhaps it could be cheaper; it will benefit the economy even more than importing. So, those are the things I think are the causes and those are the things I think can be done to correct the situation,” he maintained.

    With the cost of new tyre ranging from N25,000 to as much as N87, 000 depending on the size and make of the tyre, majority have jettisoned the implication and settled for used tyres.

    Considering the dangers associated with the use of second-hand tyres, the government in 2016 placed a ban on the importation of the product into the country, as its position was that already used and expired tyres from other countries are partly responsible for the high rate of fatalities on Nigerian roads.

    However this outright ban resulted in massive smuggling of the product through the borders that are termed to be porous, while some their find their way through the Nigerian ports as the used tyres are stuffed in most imported vans, and they are grossly not declared as investigations revealed.

    Some vehicle owners that pleaded anonymity expressed that they prefer the patronage of used tyres instead of buying some of the new tyres that would likely cause crash for them as they do not trust most of these imported new tyres.

    On the contrary, most commercial operators and some car owners said that as long as the economy remains at its present state, that it will rather be impossible for them to buy new tyres because of its high prices.

    However, the absence of tyre manufacturers in Nigeria and the high cost of brand new imported tyres have been seen as the major reasons why the illicit business is gaining momentum. Though, some experts have argued that as long as the product is sold openly in the Nigerian market, smuggling of such product may not stop, hence advising that the government should put policies in place that prohibit display of such items on the streets and the markets, as well as enforcing it stictkly.

    Finding shows that the following are the trending prices of tyre across various markets in Lagos, where the product is massively consumed.  Used tyres are sold from between N4,500, N7,000, N9,500, to N17, 000 depending on the specification, while the brand new tyres are sold from N25,000 , N29, 000 or N32, 000 or N50, 000, N68,00, N78, 000 N85,000 and above.

    A tyre dealer, Mr. Tunde Ogunlade, blamed the use of second hand tyres on weak policy enforcement, adding that the government could do more by equipping all the enforcement agencies to properly push the substandard tyres out of the markek.

    Ogunlade lamented that the used tyre has been a threat to them that import brand new tyres, adding that if action is not urgently intensified, they may be thrown out of market.

    It could be recalled that Nigeria has continue to be ranked among the world’s highest market for fake and substandard products.  It is evidenced by the indiscriminate display of all sorts of poor quality goods and products littering the open markets, shops.

    The DG of SON, Mr. Osita Aboloma some time ago said; “Fake and substandard products chased away good products from the market, leading manufacturers to closing down and hundreds of thousands of Nigerians becoming jobless. We must understand that as we keep importing into Nigeria, jobs are created for the exporting countries. It is however, a job loss for Nigeria.

    “The SON is trying its best to make sure that goods in Nigeria are not substandard, and closures of industries are not malicious. Producers and dealers of fake and substandard goods do not pay taxes. They do not observe obey laws on the environment and labour. They engage slaves as labour and pay pittance to their employees. Such practices are detrimental to the development of an economy.

     

     

  • Officials stop gang from smuggling Indian hemp into prison

    Officials of the Nigerian Prisons Service (NPS), Ikoyi, Lagos, have foiled another attempt by a two-man gang to smuggle Indian hemp into Ikoyi Prison.

    The incident occurred a week ago, barely one month after officials of the prison foiled an attempt by a housewife, Adeyemi Oyinkansola, whose husband is on remand at the Ikoyi Prison, to smuggle about 930 grams of a substance suspected to be Indian hemp concealed in four big tomato tins, into the facility.

    The suspects, Babatunde Mustapha and Abdullahi Ismail, were caught while attempting to smuggle Indian hemp into the prisons during visiting hours last week.

    It was gathered that the suspects, on arrival, requested to see an inmate, who unknown to them, had been moved from the facility to another one in Lagos.

    When told that the inmate had been moved, the suspects reportedly became confused, as they were not aware of the transfer.

    “Their mood changed immediately they heard that the inmate had been moved. In fact, the way they reacted to the transfer made those monitoring the closed-circuit television (CCTV) and other officials to become suspicious.

    “Consequently, our boss, Deputy Controller of Prisons (DCP) Tolu Ogunsakin, ordered them to be detained. He said a search should be conducted on them”, a source said.

    It was gathered that when subjected to a search, a black cellophane bag in which the Indian hemp was concealed, was found on them.

    The Nation learnt that Ogunsakin immediately ordered their arrest and seized the substance.

    Lagos State Controller of Prisons (CP) Tunde Ladipo, who confirmed the incident, said the prison authority would not relent in its effort to stop smuggling of such substances into the prison.

    “We are always very vigilant in our activities because we have zero tolerance for such acts. Immediately anybody is caught, we make sure they face the full wrath of the law. We will make no exception of these ones we’ve just arrested”, he said.

    Ladipo reiterated the determination of the prison authority to reform the inmates, to make them become useful citizens after their jail terms.

    He said Mustapha and Ismail have been handed over to the National Drug Law Enforcement Agency (NDLEA) for further interrogation and subsequent prosecution.

  • FRSC decries rice smuggling

    The Federal Road Safety Corps (FRSC), Badagry-Seme Command, says its officers and men are not aiding and abetting smugglers of rice as being speculated in some quarters.

    The Unit Commander, Mr. Fatai Bakare, who spoke at the weekend in Badagry, Lagos, said FRSC was determined to stop smuggling of rice at Seme border.

    He said: “Our operations begin at 6am and end by 6pm, except when we are on special patrol, which extends to 10pm. This special operation is restricted to the metropolis and not outside the metropolis because we are not armed. You don’t expect us to be in a secluded point when we are not armed. You don’t expect our officers to be in a secluded point around 1am when bad boys, armed to the teeth, move around.”

    Bakare said FRSC officials were not trained to arrest smugglers who usually moved at night in high speed with sophisticated weapons.

    “Smugglers are very reckless when they move, they are ready to kill. They are armed with assorted weapons such as swords, cutlasses, charms and at times guns.

    “How can you expect a non-armed organisation to arrest such people?”

    The unit commander urged the public to expose FRSC officers engaged in extortion of motorists

  • ‘Smuggling hampering trade in West Africa’

    Smuggling is affecting trade in  the West African sub-region, Manufacturers Association of Nigeria (MAN) President Mr. Mansur Ahmed has said.

    He stated this at a news conference with stakeholders at the ninth Trade Ministers Forum on West African Monetary Zone in Abuja.

    The theme of the forum was “Harnessing intra-West Africa Monetary Zone (WAMZ) trade potential through value addition and diversification.”

    Ahmed identified smuggling as a major challenge to West Africa’s free trade agreement, urging governments of the region to address the scourge to ensure smooth trade among member states.

    Ahmed said apart from the problem of smuggling, some counties that are not members have taken advantage of the free trade movement agreement to sell their goods in the region.

    According to him, such countries package their goods in the names of member countries deceitfully to enable them sell their goods without hindrance.

    The MAN chief, therefore, charged customs authorities in member states  to tackle smuggling.

    He decried the inability of Small and Medium Enterprises (SMEs) to access finance as a major problem affecting smooth trade in the sub-region.

    He said in Nigeria, there were various initiatives by the Central Bank of Nigeria (CBN) for SMEs to access funds but, was being hampered by the stringent conditions attached to the funds.

    Also, the  West Africa Monetary Institute (WAMI) Director-General, Dr. Ngozi Ejbuna, said the forum had made some recommendations on the promotion of trade in the sub-region.

    She revealed that the issue of harmonised standard products on competitive advantage in the zone was  discussed.

    She also said the resolutions of the meeting would be presented to the ministers for ratification.

    Liberia’s Central Bank Governor, Mr. Nathaniel Patray, stressed the need for governments in West Africa to create the enabling environment for smooth trade in the sub-region.

    Patray explained that African governments must remove trade barriers, ensure access to finance for businesses as well as provide good leadership for business to thrive.

    He said having an enabling environment was key and important for business to flourish in any part of the world.

    He urged member states to remove things disturbing businesses from moving forward in the region, noting that there was the need for governments to address problems affecting businesses by re-examining their domestic policies.

    Patray further urged governments the sub-region to increase salaries and wages of officers and men manning the borders to prevent corruption.

    He regretted that some officers compromise by taking bribes at the border posts, an attitude, adding that it is hampering trade.

     

  • Navy arrests six Cameroonians for smuggling contraband rice

    Men of the Nigerian Navy Ship (NNS) Victory in Cross River State have arrested six Cameroonians smuggling 700 bags of parboiled foreign rice through the Calabar Channel.

    Also arrested with the Cameroonians, who were in the country without requisite papers, were seven Nigerians, working with them.

    Commander, NNS Victory, Commodore Julius Nwagu, who handed over the illegal immigrants to the Nigeria Immigration Service and the seized rice and Nigerians to the Nigerian Customs Service, at the NNS Victory jetty in Calabar, said the contraband was worth about N11.2 million.

    ”These six Cameroonians got involved in the smuggling of the parboiled rice and they entered into Nigeria without the requisite papers thereby violating the immigrations laws in Nigeria and that is why I invited the Immigration to hand him over while the Nigeria Customs Service will take over the rice and the other Nigerians who are involved in the smuggling.

    “Christmas is coming and people want to make quick money by smuggling in rice into the country but the Nigerian Navy is hell bent on ensuring that the federal government on ban on importation of parboiled rice into the country is upheld.”

  • Four arrested as Customs reads riot act on smuggling

    Four persons have been arrested for smuggling contraband items, including cars, banned drugs and foreign rice, by the Nigerian Customs Service (NCS).

    NCS, in its clampdown on the importation of prohibited items, warned smugglers that it is up to the task to prevent smuggling of goods as the Yuletide approaches.

    The Area Customs Comptroller, Federal Operations Unit (FOU), Zone C, Kayode Olusemire, warned smugglers that the Customs would prevent smuggling of goods, especially rice and cars through land borders.

    Olusemire, who addressed reporters at the Benin office of the NCS, said in the last few days, four people have been arrested, while posh cars and other goods with a Duty Paid Value (DPV) of over N240 million have been intercepted.

    He said among the items confiscated were expensive cars of different brands, hard drugs such as cannabis sativa, hundreds of bags of rice and beverages.

    These, Olusemire said, included Range Rover and Toyota cars, 131 sacks of 10 kg each of Indian hemp, more than 430 bags of rice and other items.

    The comptroller said: “As the year comes to an end, we are witnessing increased smuggling, especially in the Southsouth and Southeast and we are ready for them. We are warning that these zones are no longer a safe haven for smugglers who devise new methods everyday. No matter what tactics they use, we will get them,”

    He said smugglers were taking advantage of increased rainfall, especially at night, to carry out their nefarious activities.

    Olusemire said no Form ‘M’ has been signed by the Customs for importation of rice, yet more and more bags of imported rice continue to flood the markets everyday.

    He assured that his men are determined to stop smuggling.

  • Buhari seeks partnership to fight human trafficking, smuggling

    PRESIDENT Muhammadu Buhari has called for collaboration among nations to fight human trafficking and smuggling of persons.

    Buhari made the call at the 16th INTERPOL Conference on Human Trafficking and Migrant Smuggling yesterday in Abuja.

    He was represented by Permanent Secretary, General Service Office, Office of the Secretary to the Government of the Federation Mr. Olusegun Adekunle.

    “Human trafficking, which is destroying the future of our youths, requires our collective efforts to eradicate,” he said.

    The President said Nigeria was among the first set of countries to domesticate United Nations (UN) relevant protocols on trafficking in persons and smuggling of persons.

    Buhari said the protocols were at various times domesticated, resulting in the country’s enactment of the trafficking in persons prohibition law enforcement Act and eradication Act 2003 and the 1963 Immigration Act.

    The Immigration Act, the President said, empowered the service to combat the smuggling of migrants.

    He added that the country had recorded a landmark in the fight against trafficking in persons and smuggling of migrants.

    Buhari noted that the collaborative efforts of the country’s security agencies had resulted in several interceptions, arrest and prosecution and conviction of 359 traffickers and smugglers.

    He urged the INTERPOL and relevant agencies to deepen already established collaboration in order to combat this modern day slavery to a standstill.

    Inspector-General Ibrahim Idris said the force was at the forefront in the fight against the ugly trend.

    Idris, who was represented by DIG Agboola Oshodi-Glover, said trafficking and smuggling in persons posed a threat to both the victims and the world.

    Secretary General of INTERPOL Mr. Jurgen Stock said trafficking in human beings and smuggling remained a prominent challenge for law enforcement.

    He noted that the trend had opened the door for the exploitation of those simply seeking improved well-being and opportunities.

  • Nigeria, Benin Republic to set up joint committee on smuggling

    PRESIDENT Muhammadu Buhari and Republic of Benin President Patrice Talon yesterday agreed to set up a joint committee to combat smuggling.

    The agreement was reached when Talon visited Buhari at the Presidential Villa in Abuja.

    Also to be consulted in the workings of the committee is Niger Republic, which is believed to be a transit point in the concentric circle of smuggling of commodities, particularly rice, into Nigeria.

    Buhari, according to a statement by his Special Adviser on Media and Publicity, Femi Adesina, said: “We have succeeded in cutting the importation of rice into the country by about 90per cent.”

    He noted that smuggled parboiled rice still finds its way into the country, thus vitiating the efforts of government and discouraging farmers.

    “When I got into office in 2015, the first thing I did was to visit all our neighbours: Niger Republic, Chad, Cameroon and Benin Republic. It made both economic and security sense, because if you are in good terms with your neighbours, you ultimately spend less on both physical and food security,” the President said.

    He, however, added that the activities of smugglers are hindering Nigeria’s quest for self-sufficiency, particularly in rice production.

    A more sinister side to the smuggling menace, the President noted, is the influx of small arms and ammunition into the country, thus increasing the spectre of insecurity.

    Modalities of the joint committee to combat smuggling are to be worked out as soon as possible, the two leaders agreed.

    The Nigerian President also welcomed the idea of a rail network to link Nigeria, Benin Republic, Niger Republic and some other countries, saying “it is valuable economically” and would be subjected to further comprehensive study.

    Talon said smuggling affects Nigeria and his country negatively and also constitutes a threat to the bilateral relationship between the two countries.

    “We are aware of how rice smuggling is affecting the development of local capacity in rice farming in Nigeria. It is affecting trade between us negatively, and Nigeria is an important partner for a country like Benin. But we have no powers to block goods meant for other countries, and our country is not the final destination for the smuggled rice. We need to develop a common will to face the problem,” Talon said.

    He added that the proposed rail network between the countries would boost economic growth.

  • Customs mulls drones to battle smuggling

    THE Nigeria Customs Service (NCS) yesterday said it was thinking of procuring drones and unmanned area vehicles to tackle border criminals and strengthen other means of anti-smuggling battle.

    Its Deputy Comptroller-General, Enforcement and Investigation Aminu Dangaladima broke the news to reporters at a news conference on the presentation of additional 30 patrol vehicles in Abuja.

    Asked whether the agency was also thinking of fighting smuggling with technology, he noted that the patrol vehicles were part of the technology that the organisation was deploying to fight criminal activities.

    Dangaladima said: “We are thinking of having drones. We are trying to bring in Air Force. And we are also trying to have something like unmanned area vehicles that can also assist us. That will go a long way. So, it is in progress, God willing.”

    He said the service was not fighting the anti-smuggling battle alone and added that it was working in collaboration with the Navy in terms of seaport security.

    According to him, the Federal Government had given the NCS much and much was expected from it in terms of revenue generation.

    Dangaladima noted that the organisation will blocked leakages.

    He said that the additional 30 Toyota Hilux patrol vehicles were all equipped with the necessary apparatus for the purpose of patrol duties.

    He noted that the first batch of 20 vehicles were presented to the public on June 11, stressing that it was part of government’s effort at curtailing smuggling of prohibited items, especially rice.