How Dangote sabotaging Nigeria's economy through smuggling of rice, others

Despite the border closure policy by President Muhammadu Buhari’s government since August 2019, investigation has revealed that Dangote Group has been engaging in subversive activities tantamount to economic sabotage, around Nigeria land borders.

The border closure policy was triggered by Nigerian authorities’ frustration with the smuggling in of rice and illicit exports of locally subsidized petrol to neighbouring countries the Benin Republic and others.

Although it may seem like the blockade encouraged the consumption of locally grown produce such as rice, it also hurt factories in some countries across West Africa, which rely on Nigeria’s market of 200 million people.

However, E-nigeria! Investigations revealed that while the borders remained shut, Dangote trucks resumed export of cement across neighbouring West African Countries and upon returning back into the country, men of the Nigerian Customs Service suspected to be under the company’s payroll look the other way while the Trucks smuggle foreign rice and other contraband goods into the country particularly through the Seme border.

Olabode Somefun, a land border clearing agent who spoke to E-nigeria recounted how his business has been in decline since the border was shut, stating that he is even more frustrated seeing the shenanigans orchestrated by Dangote Cement truck drivers on daily basis across the border. He said, “my colleagues and I who are badly affected by the border closure sit here every day gnashing, some of us are now out of business, but Dangote trucks loaded with cement drive pass the border freely and on their way back to Nigeria are again loaded with bags of foreign rice, groundnut oil and other goods. The trucks are not checked by officials of the Nigerian customs at the port of entry. We are suspecting that men of the Nigerian Customs are on the payroll of Dangote Group, which can only explain why they are often not checked.”

Where is Nigerian Customs?

Meanwhile, other eyewitnesses also narrated that at times the truck drivers stop at some Customs checkpoints to offload a few bags of rice as compensation for the officials who eventually grant them passage.

Meanwhile, in October 2019 when the Customs Comptroller-general, Hameed Ali spoke to the media in Abuja, he reiterated his agency’s commitment to President Mohammadu Buhari’s land border shut down directive, saying that it will help Nigeria to have total control over what comes in and goes out of the country.

“All goods, for now, are banned from being exported or imported through our land borders and that is to ensure that we have total control over what comes in,” Hameed said.
Reconciling the Customs chief’s statement with current realities has become a bit confusing giving current findings that Dangote Cement trucks have unfettered access to and from Nigeria’s land borders with the express support of officials of the Nigerian Customs.

Impact on local products

Although Buhari’s border closure directive was targeted at encouraging the consumption of locally grown produce such as rice, despite that, the reason why foreign rice keeps flooding the Nigerian market can now be known to the public.

“In the wake of this new reality, a question now being asked across several quarters is if the Presidency is in support of Dangote Group’s smuggling activities through Nigeria land borders particularly the Seme border? if the answer is yes, then we may have a huge case of nepotism in our hands, but if for any reason, the presidency is not ‘aware’, then Dangote Group needs to be sanctioned immediately, said a concerned Nigerian.

Dangote Group is publicly perceived as the highest benefactor of Nigeria’s economy, as there are countless allegations of tax waivers which the business conglomerate enjoys from the government from time to time.

Reaction

Responding to our report when we reached out to Dangote Group, its Head of Corporate Communications, Anthony Chiejina said the group was not the only one granted a partial license by the Nigerian government to operate while the border was shut, he said other companies like Flour Mills and Bua were also operating under the same license, why are concentrating on Dangote alone he queried?

When asked if he is also aware that Dangote trucks are used for smuggling a large quantity of foreign rice into the country, he said, “well you know the majority of these drivers cannot be trusted, sometimes they engage in illegal activities but I can assure you that we know nothing about it”.

According to E-nigeria, Mr Anthony also failed to respond to the question if Customs officials are under the company’s payroll as at the time of filing this report.

It would be recalled that the border closure policy saw the immediate halting of all trade activities across Nigerian borders with neighbouring countries like Benin and Niger State.