Thursday 27 February 2014

Smuggling: Industrialists ask FG to shut Benin borders

he Chemical and Non-Metallic Products Employers Federation has condemned what it calls state sponsored smuggling activities and asked the Federal Government to shut the nation’s borders with the neighbouring Benin Republic in order to check the menace.
According to the body, the Federal Government must take the drastic action of shutting the borders temporarily in order to save indigenous manufacturing firms from imminent collapse and prevent millions of Nigerians from being rendered jobless.
The President, CANMPEF, Chief Devakumar Edwin, who stated this at a press conference in Lagos on Thursday, said if the Federal Government was desirous of putting an end to smuggling through the many unofficial routes linking Nigeria from Benin Republic, it must summon the courage to shut the borders, even if for temporary period.
He recalled that a similar action taken by a former President, Chief Olusegun Obasanjo, yielded fruits as the Beninoise government took immediate action to check the menace of smuggling and trans-border armed robberies.
Edwin said high level smuggling was frustrating the efforts of President Goodluck Jonathan and the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, to revive the industrial and agricultural sectors of the Nigerian economy.
 He said, “CANMPEF has members across different sectors, including textile, tiles, shoes and bags, pharmaceutics, soap, toothpaste, cement, sugar, industrial gases etc and we have been expanding and making investments in new areas despite the challenges of lack of power supply, infrastructure deficit and high financial charges, among others.
“But the biggest challenge we have is state-sponsored smuggling, especially from Benin Republic, which has almost totally destroyed our businesses. Most of our members are shutting down and our membership has shrunk from 145 some years back to 92 presently.”
For instance, he said about 2.3 million tonnes of parboiled rice were being smuggled into the country from Benin annually with the attendant loss of revenue to the government and disincentive to local rice farmers and processors.
Apart from smuggling, Edwin said the federation was also worried by the anti-Nigerian posture of the Beninoise authorities by imposing heavy taxes on goods being transported by road to other countries like Togo and Ghana in clear disregard for the Economic Community of West African States’ Treaty on free movement of people and goods.
The implications of this, according to him, are that Nigeria-made goods are too expensive and uncompetitive in the ECOWAS market, whereas Benin has no manufacturing base of its own.
If the problems are not addressed on time, Edwin said over 270,000 direct jobs would be lost in the chemical and non-metallic products’ sector alone.

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