The Federal Government of Nigeria just banned the importation of cars via the land borders. All car importation must now be done via Nigerian sea ports. President Muhammadu Buhari’s decision on importation of cars through neighbouring borders was a right step for a country wallowing in recession and struggling for developmental growth.
Between 1999 and 2003, Nigeria earned $509.02bn from crude oil with an average of about $33bn annually. CBN said $4.3bn came in from non oil exports in 2015. Minster for Agriculture, Chief Audu Ogbeh stated that Nigeria spends $20bn on importation of 4 specific foods. Former Minister of Trade and Investment, Olusegun Aganga, once said that Nigeria spent more than $6 billion on importation of cars annually. Also, The Director General, Textile Manufacturers Association of Nigeria (TMAN), Mr. Hamma Kwajaffa, also stated that Nigeria spends over $4billion annually on imported textiles and ready-made clothing. Hear this one. Projects Development Institute, (PRODA), a parastatal of Federal Ministry of Science and Technology once notified us also that Nigerians annually spent 750bn importing pencils. You will have loved to hear that Nigeria leads in the importation of machinery. But no! We infact lead the world in the importation of champagne!
By the time we add up oil and non-oil exports to $37.3bn and we use $20bn to eat, $6bn to buy cars, 4bn for textiles, you definitely cannot be talking anymore of $8.5bn to invest into education according to UNESCO. Neither can any 15% of budget be spent on healthcare in line with WHO guidelines. Forget about capital projects and eh! Did we talk about salaries? Remember that besides Lagos, Kano, Ogun and Rivers, there is almost no state that can survive on her current IGR. Even states collecting 13% derivation fund are in debts!
As the jobless young Nigerian graduate on the streets is eating imported rice, the bank accounts of young illiterate Thailand farmers are getting filled up with Foreign exchange. As those cars, continue to get smuggled in, Innoson will never be able to sell her products with a comparative advantage for manufacturing here. As Cotonou continues to push in those cars and tyres, other tyre companies that employ here will join Michelin in saying bye to Nigeria. Benin Republic needs to come to terms with herself and commence local production. Nigeria is not her oxygen. The critical linkage between this ban and food importation is that there are hardly empty cars smuggled into Nigeria from these Neighbouring countries. A simple peep may show nothing but a further search may burst the hiding of thousands of bags of rice.
While it is quite easy to issue a ban of vehicle importation from all land borders, it is not a joke for the Nigerian customs service to enforce it. The NCS will have to, beyond terrestrial patrol harmonise intensive aerial surveillance into her operations. For many border towns, smuggling businesses have become family professions. Like President Olusegun Obasanjo did by banning importation of Fruit juices, Buhari needs to ban the importation of rice, let cassava play roles in bread production and let River Niger, River Benue, Riverine areas and fish farmers provide the fish Nigeria will eat. Nigerians may first appear very sophisticated when it comes to imported products but with time, we adjust excellently. Infact, today, many people forget to remember that the Chivita, Five Alive and Happy Hour they drink today are made in Nigeria. Buhari needs to grossly discourage importation by shutting out products with which we have comparative advantage. Not until then shall we have Nigerian farmers thrive. Not until then shall we have manufacturers like Innoson succeed.
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