When the federal government announced the closure of Nigeria’s land borders on the 20th of August, it sighted the need to establish a relationship of mutual coexistence between Nigeria and her neighbors. The Nigerian customs boss maintained that Nigeria’s land borders would remain shut until neighbouring countries comply with protocols on movement of goods and persons as established by the Economic Community of West African States.

While some experts have questioned the legality of the move, others have praised it for the economic advantages it supposedly offers Nigerian farmers.

Short cut to success
When the federal government launched the economic recovery and growth plan (ERGP) in 2017, one of its cardinal stanchions was to create over 15 million jobs by 2020, as well as drive food security by achieving self sufficiency in tomato (2017), rice (2018) and wheat (2020).

By 2018, Nigeria’s demand for rice had risen to 6.7 million tons, with domestic production falling well below 4 million tons in the same period. Despite a 70% hike in tariffs and levies since 2015, but with local production still far below demand, rice has found its way across Nigeria’s borders by hook or crook.

Since the recent land border closure intended to enforce an outright ban on rice importation, the price of rice has risen abruptly. Since June 2019, one kilogramme of rice (imported high quality sold loose) has gone from N352.82 per kilogramme to N540 per kilogramme. With local production hardly rising above previous levels and consumers moving away from the expensive foreign alternative, some experts predict that the price of a kilogramme of rice might stabilize at N800 by the years’ end (that’s N40,000 for a 50 kilogrammes bag).

Self sufficiency should translate to our local demand been met by local production and if this be the case, we are still half way there.

However, with time the federal government’s cosmetic approach if sustained might force a drop in general consumption, as Nigerian consumers bare the largest share of the policies burden.

If prices continue to rise as predicted and consumption falls with respect to the elasticity of rice, then that point comes when the general demand will match local production. At this point we can say we are “self sufficient”, but definitely not at the current disequilibrium.

Good or bad policy?
The Nigerian customs recently revealed that it has raked an average of N4.7 billion to N5.8 billion daily since the border closure. An estimate it claimed was above its initial revenue prior to the closure.

The federal government also claims that since the border was closed on the 20th of August, the diversion of petroleum products from Nigeria to neighbouring countries had ceased, saving us 10.2 million litres of premium motor spirit (PMS).

What’s the catch?
In its latest inflation report, the National Bureau of Statistics (NBS) revealed that consumer price index had risen to 11.24% by September 2019. Previous data from the NBS showed that inflation began to rise following Nigeria’s closure of its land borders.

With an outright ban on trade through the nation’s land borders, aggregate demand seems to outpace aggregate supply. This unavailability of adequate supply leads producers/suppliers to increase prices, thus leading to a demand-pull inflation.

From being forced to settle for low quality staple food, to increase in the general price level, the average Nigerian pays the price for the federal government’s border closure policy.

By Cephas Kadiri and Uwemedimoh Sampson

Source:
http://www.gpggnigeria.org/border-closure-are-we-truly-self-sufficient-in-food-production/

Buhari is a total failure

.

Everybody knows we're not self sufficient in food production. Only Buhari thinks otherwise!

No! I can't answer this questions off head. I need to consult my Oracle...

WonderManly:
No! I can't answer this questions off head. I need to consult my Oracle...

Lol. It's not off head though, its offhand

SarkinYarki:
Buhari is a total failure

You must have said this without reading the piece first. First to comment gang!

mine is that things are getting higher

keep complaining ....The closure is here to stay.

For majority of Nigeria's population born in 70's and early 80's......Rice was gold...eaten mostly around festive period and in parties. Maybe we should go back to that era and start eating our porridge corn and Beans. (Egbo ati ewa)

In my area, Somewhere in Nigeria, Food is To much, no much Rice but plenty tomatoes, Okra, cassava, meat, milk, beans, bread, beer, vodka, Fura da Nunu, Kundurumo " whole Cow milk" etc all wasting

We are not!

Thats why we fly in pizza!

Our President no get school cert!

Buharism......

In view, yes

Yahoo president

No! We shall get there. They should just try and work on the inflation and we will be alright last.

No. We are only self sufficient in cow breeding

Buhari did this "close the border" thing in 1984 and 1985. You guys didn't learn.

Now it appears that his second term will even be more protectionist than his first term.

The Pic below is from the Adeshina days (Adeshina was simply the most remarkable agriculture minister Nigeria ever add). He wasn't simply a "close the border and magic will happen" kind of minister.

How many of these problems will "closing the borders" solve? Please ask Buharideens.

Nigeria is not self sufficient In all ramifications. Buhari should stop deceiving himself that he is working. Instead, he is adding more sufferings to Nigerians

Are we queuing for food Are the markets empty Answer is no. Am with Buhari on this

we can borrow to buy rice

Las Las, we go dey alright for this country.

Border clôsure is indeed à good economic policy, but we do not have thé food sufficiency to take care of the demand. For import ban to mâke economic sense, there should be import substitution strategy to ensure that goods and services hitherto imported into the country are produced locally in sufficient quantities. Thé implication of this is that, in thé long run, demand Will excéed supply leading to a skyrocketed price level as it is witnessed today. Thère should be strategies to increase production and ensure competition in order to maintain quality and control prices through market forces.

The government aside, Nigerians are not patriotic, Majority are greedy & selfish to d extent they can destroy their fellow countrymen for money. We are special breed of humans that things won't exactly work the normal way for us.

Nigerians need seriously suffering before they fix stuff affecting them. So the border should remain closed & just give us 365 maximum & we will be overly sufficient in rice production.


The funny thing is Nigeria is blessed with EVERYTHING A COUNTRY NEEDS TO SUCCEED, BUT WE ARE CURSED WITH SELFISH LEADERS WHO ONLY CARE ABOUT THEMSELVES.

The border should remain closed!

If Food prices Skyrocketed after border closure ......What do You think?

I think if we actually want to be self sufficient then the border closure is a good move, rice isn’t the only food we have in Nigeria, the problem is those that are producing the local rice, the government has to work with them to at least beat down the price and help them improve on their products quality and quantity and in another few years now we will be glad on how much we have improved as a Nation!! All these will pass and If they don’t fuvck this up he may be putting his footprint in the sand of time!

Good policies die through bad implementation.
The border closure isn't a bad idea but the failure of government to control the price of local production is the reason why we are at this point.

How can the price of rice be so skewed within the country that in fact, it is now assuming similar price with the highly taxed foreign ones.

With the Yuletide upon us, I Wonder what the situation will be to those who can barely afford a decent meal during the year not to talk of festivities!

No, we are not and with the way things are going, we will never be.

Protectionist policies like this border closure thing needs two things to work properly.

1. The government making pro-agriculture policies.

This goes past the chicken change loans currently given to farmers. Farmers need modern farm consumables, equipment and technologies.

Nigeria actually produces more food than we all think. Most only end up getting wasted due to logistics problems and poor storage. Both problems are closely linked to the bad roads and poor electricity supply.

2. Security.

I don't need to talk about this.

3. Introduction of high tariffs and total banning of some produce.


Buhari went the number 3 route without applying numbers 1 and 2. He did not even introduce tariffs but outright banning. Worse, it is not permanent and there're indications the borders could be opened anytime.

This would make investors willing to go into large scale farming remain skeptical since the lack of a permanent agricultural policy could see the borders suddenly open again overnight, destroying their investments.

The lack of a permanent agricultural policy is the reason farming will continue on a subsistence level. Even middlemen (who buy from farmers to sell in markets) make more money than the farmers who have next to nothing to show for their efforts.

The result is that farmers he is supposedly trying to help will still continue to struggle.

I also observed that Buhari did not ban the importation of farm produce to help the farmers. He did it because Nigeria is broke and short of forex. So folks, there you go.

If we aren't then we should start working towards that.

A nation that cannot feed itself should not exist.

If the borders are reopened now we won't do the right thing.

Let us starve while we improve food production.

No pain, no gain.

I support this closure... it will help us develop

This is actually a good move even though there will be short term cost. In the long run, people will come to appreciate the policy