Customs affirms that rice is still under restriction despite the removal of the forex ban.

  Despite the rising cost of rice and the recent removal of the ban on foreign exchange for its imports, the Nigeria Customs Service has affirmed that rice remains a restricted commodity.

Rice, a commonly consumed staple in Nigeria, has experienced a price increase, ranging from N55,000 to N60,000 for a 50kg bag, depending on the location of purchase. This marks a notable surge from approximately N30,000 per 50kg bag a year ago, despite local production and the recent allowance of forex for rice imports.

On October 12, The PUNCH reported that the Central Bank of Nigeria lifted the ban on importers for 43 items, including rice, from accessing foreign exchange on its official platform.  

Many Nigerians anticipated a drop in rice prices, especially for imported varieties, following this announcement. However, contrary to expectations, the cost of this staple has continued to rise.

While domestic rice producers attribute the increased cost to high production expenses, it has been observed that rice imports are still limited due to restrictions imposed by the Nigeria Customs Service.  

The NCS emphasizes that rice remains a restricted item and will be confiscated if imported through the country's land borders. The lifting of the forex ban by the CBN on 43 items does not alter the restricted status of rice.

The NCS spokesperson, Abdullahi Maiwada, clarified, "What is the relationship between the removal of forex on restricted items, vis-a-vis fiscal policies of the government? They are different things.  

Rice is a restricted item. So, if it is a restricted item, it remains restricted." He further explained the distinctions between restriction, prohibition, and different forms of trade limitations.

The focus should be on determining the quantity of rice produced in Nigeria, not questioning why the prices are rising, according to Maiwada. 

 He emphasized that rice is a restricted item, and any attempts to import it through land borders would result in confiscation, similar to restrictions on vehicle imports through the same channels.

Maiwada maintained that the government's restrictive policy on rice had not changed, and any alterations would be communicated to the public by the customs service. He clarified that Customs does not influence market prices, as their role is solely to implement fiscal policies.

In October 2023, the Central Bank had announced the lifting of restrictions on 43 previously restricted items, allowing importers to access foreign exchange in the Nigerian market.  

The bank emphasized its commitment to promoting orderliness in the foreign exchange market, with exchange rates determined by market forces on a willing buyer – willing seller basis.  

The statement also outlined efforts to clear the FX backlog and ongoing dialogue with stakeholders to address related issues.

A reliable source within the Central Bank disclosed that obtaining dollars for importing rice would be challenging due to the shortage of forex.

Speaking on conditions of anonymity due to lack of authorization, the source stated, "For seaports, importing with secured forex is ideal, but the reality is that you cannot. Your Form-A for rice import will not be approved; I'm just presenting this reality."

The official clarified, "Each government has its approach, but the situation remains unchanged for rice imports, despite the removal of the ban on forex restrictions for some items."

Kabir Ibrahim, the President of the All Farmers Association of Nigeria, explained that the surge in rice prices in Nigeria was not the fault of farmers but a result of the high production costs associated with the commodity.