1,800 trucks transport livestock from the northern to the southern part monthly.
Alhaji Mustafa Ali, the head of the Association of Sheep and Goat Sellers of Nigeria, has recently spoken out against the extortion of members by non-state actors, highlighting the unabated challenges in the states of Benue and Taraba. He claims that over 1,800 trucks freight livestock such as cattle, goats, sheep, and camels from northern to southern Nigeria every month. Among the southern states where livestock was freighted, Lagos ranked as the most prominent, followed by Rivers, Delta, Akwa Ibom, Enugu, Abia, and Bayelsa.
Also holding the title of National Auditor of the Amalgamated Union of Foodstuff and Cattle Dealers of Nigeria (AUFCDN), Alhaji Mustafa Ali, expressed displeasure over the present economic conditions, saying that, unlike the market level in prior years, sales are quite stagnant from November or two weeks to Christmas since livestock are pricey from the dealers’ end and point of sales. He said that despite this, the industry has enormous potential, beginning with the purchase of animals and ending with final merchants. He said the value chain generates numerous work opportunities for youths and others and is particularly plentiful during the festive season.
Unauthorized tax collectors had set up 40 toll gates in Benue state.
The National Organising Secretary of AUFCDN, Alhaji Ayuba Umar Rano, made a statement in which he highlighted the adverse consequences of various extortions in several states carried out under the guise of taxation by non-state actors on their profitability. He noted that extortion was worse in certain states than others, and he expressed particular fury at the situation in Benue state, where unauthorized tax collectors had set up more than 40 toll gates. In contrast to the Benue state, no other state in the nation has been unjustly overtaxed by non-state revenue collectors.
Following a discussion with their revenue service, Rano stated that a tax of N50,000 per truckload of cattle is now required at each toll gate if the livestock were not loaded inside the state and a fee of N25,000 for cattle purchased within the state. However, he noted that state administrations are not aware of the issue. According to him, none of the taxes collected at the toll gate were forwarded to the federal or state governments.
There are additional challenges inherent to the business.
He continued by saying that the scenario is different for cattle dealers on certain other roads, including from Mubi in Adamawa State, Gombe, Kano, Kaduna, and Niger states to Lagos, where there is little to no penny along the way. Considering the high value of cows and the high cost of transportation, Rano indicated that there are additional challenges inherent to the business. He explained by relating an incident that took place along the highway from Maigatari to Owerri, in which a vehicle conveying cows was hijacked and at least eight cows, valued a total of N800,000, were stolen.
In addition, Reno added that the challenges are insurmountable, as a result of which it would cost no less than N500,000 to convey a cow from Mubi to Port Harcourt. A vehicle that was going from Gombe to Port Harcourt reported spending more than N580,000 before reaching its destination. Because of the high cost of gasoline, the total cost of hiring a trailer to convey livestock could range anywhere from N1.5 million to N1.6 million.
Only a few people earn reasonable profit from the business.
The overall expenditures incurred before a cow reaches its destination in the South, including transportation, meals, and road fees, amount to N75,000 to N80,000, as opposed to N30,000 for transporting a cow before. Reno adds that if you are selling to someone who is not ready to purchase, they will not want to purchase at a price that would fetch a good profit; considering this, only a few people earn a reasonable profit from the business. Nevertheless, he reiterated that the unauthorized actors extorting members are of major concern.
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