By Mathew Dadiya, Abuja

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has said the
decision by the Nigerian government to close the country’s land borders was
yielding a positive result for the economy.

Emefiele said that more jobs were being created and new industries were
springing up.

The central bank governor disclosed this on Monday, while speaking to State
House correspondents after he met with President Muhammadu Buhari behind
closed-door in Aso Rock, Presidential Villa, Abuja

On when the borders were likely to be opened, Emefiele declared that the
land borders would remain closed until neighbouring countries agreed to
implement mutual anti-smuggling policies. 

Republic of Niger in the northern border and Benin Republic to the west, are
two countries noted as having several smuggling routes into Nigeria. 

President Buhari last month, ordered the closure of the borders.

Emerging from the closed-door meeting, Emefiele told State House
correspondents that Nigerian rice and poultry farmers have particularly
benefitted immensely from the border closure as they have been able to sell off
accumulated produce, hitherto hindered by illegal importation and smuggling of
the items into the country.

He noted that the situation had been undermining Nigeria’s economy and that
the Federal Government was therefore, resolute in keeping the borders closed
until engagements were concluded with Nigeria’s neighbours to have them stop
using their ports as launch pads for smuggling item into the country.

Emefiele also used the opportunity to list the benefits of the border
closure.

According to the apex bank chief: “In November 2015, President
Muhammadu Buhari, the Central Bank and some state governors went to Kebbi State
to launch the Wet Season Rice Farming. Since then, we have seen an astronomical
growth in the number of farmers who have been going into rice farming and our
paddy production has gone up also quite exponentially. 

“Between 2015 and also now, we have also seen an astronomical rise in
the number of companies, corporate and individuals that are setting up mills,
integrated mills and even small mills in the various areas.

” The Central Bank and the federal Ministry of Agriculture and rural
development has been the centre of not just only encouraging the production of
rice in Nigeria but also funding these farmers by given them loans to buy
seedlings, fertilizers or some of the herbicides that they need for their rice
production. 

“We have been embarking on a programme where we are saying if you are
involved in the business of smuggling or dumping of rice in the country, we
close your account in the banking industry. And that is coming very
effectively.

“Recently, and this is the absolute truth, about two weeks before the
border closure, the chairman of the Rice Processors Association – incidentally,
he owns Umza Rice in Kano – called me and said that all the rice millers and
processors are carrying in their warehouses nothing less than 25,000 metric
tons of milled rice in their warehouses. 

“This rice has been unsold because of the smuggling and dumping of rice
through Republic of Benin and other border posts that we have in the country
and that he would want us to do something about it. 

“Secondly, we also have members of the Poultry Association of Nigeria
who also complained that they have thousands of crates of eggs that they could
not sell; even some of the processed chickens that they could not sell, also
arising from smuggling and dumping of poultry products into Nigeria. 

“I was told also that after some meetings that were held in addition to
those engagements that we (CBN) also held with the President, the border was
closed subsequently. 

“A week after the borders were closed, the same rice millers
association called to tell us that all the rice that they had in their
warehouses have all been sold. 

“Indeed, a lot of people have been depositing money in their accounts
and they have even been telling them to ‘please hold on don’t even pay money
yet until we finish processing your rice.’

“The Poultry Associations have also come to say that they have sold all
their eggs, they have sold all their processed chickens and that demand is
rising. 

“So when you asked, what is the benefit, the benefit of the border
closure on the economy of Nigeria, I just used two products – poultry and rice.
The benefit is that it has helped to create jobs for our people, it has helped
to bring our integrated rice milling that we have in the country back into
business again and they are making money. 

“Our rural communities are bubbling because there are activities, as
rice farmers are able to sell their paddy. The poultry business is also doing
well, and also maize farmers who produce maize from which feeds are produced
are also doing business. These are the benefits. 

“We are not saying that the borders should be closed in perpetuity, but
that before the borders be reopened, there must be concrete engagements with
countries that are involved in using their ports and countries as landing ports
for bringing in goods that are smuggling into Nigeria. 

“That engagement must be held so that we agree on the basis under
which: what are the kinds of products that they can land in their countries
because if those products they land in their countries is meant for their own
local consumption, it is understandable. 

“But the fact that those products are landed in their countries and
then transshipped or smuggled into Nigeria is something that I am sure you all
agree as Nigerians we should not allow to happen because it undermines our
economic policy. It undermines our own desire to make sure that industries are
alive and jobs are created in Nigeria.”