FOLLOWING the recent report that the Federal Government would import 100 rice mills from China for distribution to states, The Lagos Chamber of Commerce and Industry (LCCI), has said acquisition should be done by the private sector with the support of government.
In a release by the President of LCCI, Mr Goodie Ibru, he said the current policy thrust in economic management, which has been severally canvassed by the members of the economic team, is that government would concentrate on the provision of enabling environment and institutions to support the growth of private enterprises. This fundamental principle is also clearly elaborated in the Vision 20 2020 document as an economic management philosophy that would guide the choice and direction of economic policy.
“The story of the NNPC, the Refineries, NITEL, Steel Complexes, Fertilizer Plants, Petrochemical Plants, Nigeria Airways, the Railways, Paper Mills etc. illustrate the tragedy of state owned enterprises in Nigeria. These enterprises were managed (and some are still managed) by politicians and bureaucrats and the cost to the economy was horrendous.
Similar scenarios played out in many states. This is not a model of government intervention that the economy deserves and this has been proven by empirical evidence. It has not worked in most economies as it is typically marred by mismanagement and corruption” he said.
According to him, direct government intervention is desirable in infrastructures, security, environment, public schools and hospitals as well as other areas in which there are evident cases of market failure.
“The proposed acquisition of rice mills raises a number of specific concerns: How will the rice mills be distributed? How will they be managed? And how will they operate alongside the existing rice processing mills owned by small scale operators without creating the challenge of unfair competition?” he stated.
He said current needs of rice millers in the country include improved processing technology (preferably not too sophisticated and of small or medium scale), funding through credit support at concessionary interest rates to enable operators acquire more paddy rice, de-stoning machines, parboiling machines etc., access roads to rice producing and processing locations to facilitate evacuation and improve market access, irrigation to ensure all year round rice farming and improved seedlings to improve productivity.
These are some of the gaps that currently exist and inhibit productivity of millers. It is important to get priorities right for optimal outcomes and impact.
Comments are moderated. Please keep them clean and brief.