LAGOS – THE Federal Government has stopped the import duty waiver scheme; a programme that is used to encourage some categories of importers which has also been subjected to abuse by some importers.
Some of the earlier beneficiaries of waivers and concession include Dangote Industries Limited, Vaswani, Stallion and other rice importers; the Redeemed Christian Church of God, Messrs Western Metal Product Co. Limited, International Hotels, Mandarin Hotels, Le Meridian, Grand Ikoyi Towers and Resort and Federal Palace Hotels.Others are members of the diplomatic corps; companies fronting for top government functionaries.
The decision to stop granting import waivers was reached after it was discovered that in 2011 alone, a colossal N37.2 billion was lost as a result of import waivers that were granted to importers of raw materials in that year alone. Nigeria Customs Service records have shown that the nation lost N276.9 billion between 2000 and 2008.
A new twist to the waiver saga is the discovery that beneficiaries of Federal Government Export Expansion Grant now use the proceeds of the grant which has cost the government over N300 billion to bring into the country finished products. In the last quarter of 2011 the Federal Government approved N45 billion as Export Expansion Grant (EEG) to be paid out to beneficiary companies. Among the tanneries in Kano, a single company pocketed over N35 billion in the past five years.
The major beneficiaries of the Export Expansion Grant are foreigners, who sink the benefits of the grant in other countries.
Representatives investigation in 2009 into waivers granted by federal government said that the government was yet to abate the practice of granting “illegal and indiscriminate” waivers to “totally undeserving” firms and individuals, despite repeated orders from the House that the policy be discontinued.
Representatives investigation in 2009 into waivers granted by federal government said that the government was yet to abate the practice of granting “illegal and indiscriminate” waivers to “totally undeserving” firms and individuals, despite repeated orders from the House that the policy be discontinued.
Currently, about 183 undertakings and individuals are beneficiaries of import waivers, exemptions and concessions running into several billions of naira accruable to the federation account, the House disclosed. Confirming the loss last week at the budget defense session at the Senate, Deputy Comptroller General, Human Resources at the Nigeria Customs Service (NCS), Alhaji Garuba Makarfi told the lawmakers that the Presidency had directed that no import waiver be granted in the 2012 fiscal year.
According to him, “We lost 7 per cent of our collection to export expansion grant which is non-negotiable, this amounted to about N37.2 billion. The grant was given to export-oriented companies and local manufacturers, to export raw materials, but instead, these local manufacturers sell their certificates to dealers who then use it to import cars into the country.”
The Import duty waivers were granted by the administration of former President Olusegun Obasanjo to about 1,843 beneficiaries in 2007 amounting to about N165 billion loss to the economy. A breakdown of this showed that the highest amount of N42.598bn was recorded in 2007. In 2006, the waivers stood at N19.379billion; N18, 394billion in 2003; N33.970billion in 2004; while it was N41.650billion in 2005. Customs report said that the government lost N9.512bn in the first three months of 2008. However, the value of imported items within a five-year period stood at N901.9billion.
The report said Dangote got “concession of five per cent for raw sugar and exemption from payment of 10 per cent of sugar levy. The exemption is still running and has no time frame.” Similarly, it secured “two years concession from payment of duties on the import (importation) of tomatoes paste.”
The five per cent sugar levy paid by all importers of sugar for the development of the sector is kept with the Central Bank of Nigeria. As at March 31, 2008, the account had hit N2.24billion.
Importers of steel were allowed to pay 20 per cent levy instead of the normal 50 per cent, the report added.
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What is the Redeemed Christian Church of God importing to the country that warrants it getting a waiver from the payment of duties? Where is Pastor Ayo Oritsejafor and other Christian and CAN leaders to condemn this? If this concession were made to other faiths, these men of God would have been up in arms that the Government is favouring one faith against theirs. If it was the Governor of the Central Bank, Lamido Sanusi that granted the waiver, they would have acused him of wanting to Islamise Nigeria.
ReplyDeleteI think the true test of their integrity as true men of God is the ability of speak the truth always rather than serve both self and parochial interest.
I challenge any one of them to defend this.
My friend, you have not said anything meaningful, but you only asked the right question which niether you nor the writer has provided us with the answer. The question is what are they importing and why the waiver? When we know we will then understand better before we can start dicotomicising and crucifying RCCG.
ReplyDeleteYeah...am sure u did challenge it, that's why u are "anonymous"....If only u think before u speak/write!
ReplyDeletewe should all evaluate ourself before others.
ReplyDeleteI support the anonymous that posted on Feb 6, 2012 at 02 04AM. What is the RCCG importing? When a small man steals a goat, he gets arrested, prosecuted and jailed. But when people in government loot or help to loot billions, they have no case to answer. Boko Haram will rather attack innocent people instead of the real people. Very soon, there will be a revolution in this country. And heads of political office holders and their agents will roll. Jonathan should better act now or never. God will help us by splitting this country into many pieces. We are tired. Ordinary man is roaming the street while billions are being stolen and stashed outside the country. Steal the money and invest it here, people will have jobs and things will be ok. One day, it may not be this year or next, blood will flow in those offices. What happened in Ghana during Jerry Rawling's reign will happen here. God punish our politicians for ever and ever. Amen.
ReplyDeleteSince everyone goes by the anonymous, responding to anonymous 2.04am. You have made some valid points but don't drag RCCG into it yet until we get full details. It's either the writer of the article made an error as we've seen in my cases by including them or it may well be that they are importing items meant for charity(only a guess). We need to applaud this move innany case. Just hope it does not signify another rise in cost of some common commodity as I hear them naming ordinary sugar.
ReplyDeleteThe removal of subsidy on fuel affected both the poor and rich, though relative to deep pockets the poor suffers more. The CBN Governor talked about subsidising production that makes sense, the question is why remove import subsidy if it will truly make local producers compete with foreign producers? Why remove subsidy on import on educational items being imported by RCCG, when it was designed to fill in gaps created by the govt? We always prefer the easy way out! Because cabals were milking the economy deal with them by removing fuel subsidy the poor can die anyway
ReplyDeleteMr Anonymous, you were sentimentally biased as to pick on RCCG and CAN on this issue. Lets give peace a chance in this country. Your response does not show that you meant well for this country.
ReplyDeleteAgain, if RCCG is following this let them come out and make clear their involvement in this concession thing to disabuse the minds of the likes of mr anonymous of any complicities in the rot in this nation.
All these goes to show Nigerians that no matter how these people in government sugarcoat any of there policies,it will in the long run never be favorable to the mases.. imagine the billions which they mention and still some people can not afford three square meals... what does a church need import waiver for ?.God help Nigeria.
ReplyDeleteWao! the only nigerian justified billionaire that appeared in the list of world richest men also have corruption behind his billions not to talk of those who cannot show their faces on that list.
ReplyDeleteGOD help us this is too much!
so much billions been robbed of the country how can nigeria develop,why will the masses not suffer so much? why are the so called leaders and thier few agents so evil because this is the limit of man`s wickedness to their fellow men. Nigerians rise kill all of them both present and past leaders they have to die with their evil setup to free this country especially IBB and Obasanjo death to all of them
ReplyDeleteLet me provide you with the answer please. The issue here is not illegal importation but GOVERNMENT APPROVED WAIVER on imported raw materials and the like. THE REDEEMED CHRISTIAN CHURCH OF GOD was given that waiver by the Federal Government of Nigeria. It imported iron steel which in large quantity which were used in building the biggest church auditorium in Nigeria. You travel to the Redemption Camp located along Km 46, Lagos-Ibadan Expressway, near Mowe in Ogun State of Nigeria and see for yourself.
ReplyDeleteChristian worshippers, pagans and even Muslims from all over the world gather every first Friday on the Month to attend Holy Ghost Service, every August for the RCCG Annual Convention and every December for the Holy Ghost Congress where they are blessed spiritually and manifesting in the form of salvation of souls, healing promotion, financial breakthrough, etc.
You are cordially invited to the March 2012 special Holy Ghost service to mark the 70th birthday of Daddy Adeboye. It starts on the 1st of March, 2012. COME AND BE BLESSED.
You can watch the programme live via internet at RCCG website, and satelite channels.