Rice Remains Restricted Despite Lifting of Forex Ban, Customs Affirms

Despite the recent lifting of the ban on foreign exchange for rice imports, the Nigeria Customs Service (NCS) has affirmed that rice remains a restricted commodity, contributing to the persistent surge in its prices.

Rice, a crucial staple in Nigeria, has experienced a significant price hike, now ranging between N55,000 and N60,000 for a 50kg bag, depending on the location of purchase. This surge contrasts sharply with expectations following the Central Bank of Nigeria’s (CBN) decision to lift the forex ban on 43 items, including rice.

The CBN’s move on October 12 aimed to boost liquidity in the forex market, allowing importers access to foreign exchange for the restricted items. However, the cost of rice has continued to rise, prompting inquiries into the reasons behind the unexpected trend.

While domestic rice producers cite high production costs as a major factor, it appears that the limited availability of imported rice, due to ongoing restrictions by the Nigeria Customs Service, also contributes to the price surge.

The NCS spokesperson, Abdullahi Maiwada, clarified that the removal of the forex ban did not alter the status of rice as a restricted item. He emphasized that any attempt to import rice through land borders would result in confiscation, reinforcing the government’s commitment to its restrictive policy.

Maiwada stated, “Rice is a restricted item, and that is why it is being intercepted. If you import rice through the land border, it will be confiscated because it is a restricted item.”

Despite public anticipation for a reduction in rice prices post-forex ban lift, the NCS maintains that the government’s policy on rice imports remains unchanged. Maiwada affirmed that any policy alterations would be communicated to the public through official channels.

While the CBN assured its commitment to clearing the forex backlog and allowing market forces to determine exchange rates, an undisclosed source acknowledged the challenge of securing dollars for rice imports, making it difficult to obtain approval for importing rice.

The President of the All Farmers Association of Nigeria, Kabir Ibrahim, shifted blame away from farmers, asserting that the soaring rice prices were a consequence of the high production costs rather than the fault of those cultivating the commodity.