Over 12 ships laden with rice which have been on anchor at the outside bar of the Lagos ports since last year may sail into the ports any moment from now. This follows the federal government decision to slash the 110% duty it imposed on rice last year to 70%.
There are reports that about 40 ship loads of rice destined for Apapa Port last February were diverted to the ports of neighbouring countries. The ships were expected to berth at ENL Consortium Terminal, the Apapa Bulk Terminal and Greenview Development Nigeria Limited (GVDL) Terminal. But investigation shows that none of the vessels berthed at the terminals.
Observers say the federal government may have bowed to pressures mounted by importers and stakeholders since the 110% increase was announced last year. Sources at the ports confirmed that some ships have been at the outside bar since last year while the owners of the consignments lobbied the government.
As at last Friday, six of the ships were being expected to berth at Apapa Port by weekend. They include: Lake Hakone with 22000MT, Atlantic Trade with 14000MT and Quest with 20000MT. Others are, Aeolos loaded with 25000MT, Aqua Runner with 20800MT and Silvreta with 24000MT. Six other ships were also listed as being expected this week.
A shipping agency that handles most of the rice consignment told our correspondent that more than 20 vessels laden with rice were still on the high sea waiting to come in.
Indications that the federal government may reduce the duty on the commodity was given early last week by the minister of finance, DrNgoziOkonjo-Iweala, when she told a meeting of members of Manufacturers Association of Nigeria (MAN), that she and her counterpart in the agriculture and rural development ministry, DrAkinwumiAdesina, had begun consultations on the issue.
The finance minister had said at the interactive session which was organised by MAN that it had become necessary to review the 100% duty and 10% levy on rice, because it had created significant challenges even though it had also led to a marked increase in rice output in the country and created a significant number of jobs mostly in the northern part of the country.
She admitted that “the 100% duty and 10% levy on rice has caused a significant reduction in customs revenue and has been largely hijacked by smugglers and neighbouring countries.”
“So we are reviewing the rice duties policy and we are discussing with the president and the minister of agriculture,” she hinted.
Ministry of finance sources confirmed that the duty reduction has already been communicated to the importers. However, sources at the Nigeria Customs Service in Lagos said that they were yet to receive any circular to that effect.
