Import Substitution Fishing?

In the department of “what could go wrong?”, the Nigerian government has embarked on a new plan to promote fish farming by slapping import quotas on foreign fish (that’s a funny concept, as if the fish in Nigerian waters carry (waterproof) citizenship papers)).

So what are the details of this creative new plan for growth?  The Ministry of Agriculture first sought to ban all fish imports for four years and force fish importers to start fish farms.  This brilliant nugget was shot down by public outcry, who rightly realized that there would be massive fish shortages.  Somehow the government thinks that the skills needed for import-export are the same for fish farming.  I don’t know what exactly each of those jobs entails, but it doesn’t strike me as likely that the same person would be equally well suited for both.

Alright, back to the drawing board.  The Minister then decided on a 25% annual reduction in fish imports, using foreign exchange as a control mechanism. Foreign exchange is already regulated by the Nigerian authorities and fish importers have already learned to game the system; that is, claim to be importing way more fish than they actually are and resell the foreign exchange on the black market.

The article does a good job of summing up other reasons the policy is likely to fail:

“The Nigeria Agriculture Minister has said, “In 2013, a total of 3.6 million juveniles, 36,000 bags of 15 kilograms of feed and 200 water testing kits were provided to fishermen in ten states, at a total cost of N1.5 billion Naira.” While many fish farmers indicate they are yet to see and/or get these items, market analysts state that these are grossly inadequate to make any impact on boosting production to cover the import cut.

Nigeria’s marine waters are also unsafe with serious security challenges which hamper fish and shrimp trawling. Nigeria’s Niger Delta areas used to be the hub of the country’s fishing and fishery production. But that status has been overwritten since Nigeria’s oil and gas discovery in that region. Water pollution from oil and gas exploration activities in the region has continued to deplete the region for fishery activities.”

and I agree completely with their forecast:

“Many industry watchers indicate that Nigeria’s fish quota regime can only increase food inflation and open up channels for profiteering by politically-connected importers and individuals with privileged access to top government officials. This will fuel smuggling and the corruption of port officials, as well as increase the risk of disease in domestic fish farming as pond will be overtaxed as fish farmers try to boost production.”

The real question is if the program’s failure is so easy to predict in advance, why is the government pursuing it?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s