TheCable

The senate ad hoc committee on import duty waivers, concession and grants, has revealed that the country lost N106bn to import duty waivers and concessions in 2015.

The report, which was presented to the senate on Tuesday by Adamu Aliero, chairman of the committee, said government’s patronage of some indigenous companies had been scaring away investors.

In the report, Stallion Group/Popular foods, Olam International Limited, Elephant Group, Bua Int Ltd, Honeywell Group, Dangote Group, and Ibeto Group were listed among a string of companies which have been benefitting from import duty waivers and concessions.

According to Aliero, the findings of the committee are: “That customs duty waivers and concessions have been used by the budget office of the federation to entrench a very destructive patronage system to our economy; whereby very few operators in the economy were singled-out for favours resulting in unfair competition in the system.

“That’s as a result of the application of the above discriminatory system, many would-be investors were discouraged from investing in Nigeria as many local and foreign investors had cited this as one of the reasons for not having interest to invest in the country.

“The above is buttressed by the favours and patronage dispensed to the following companies to a name a few to the detriment of the other operators in economy: Stallion Group/Popular foods, Olam International Limited, Elephant Group, Bua Int Ltd and Honeywell Group- rice sector. Dangote Group, Ibeto Group and Bua Int Ltd- cement sector, Meditarion Nig Ltd and Bua Sugar- sugar sector. Coscharis, Globe Motors, Stallion Group- automobile sector.”

After the presentation of the report, the senate resolved to urge the federal government to take appropriate steps to come up with clear-cut policy on import duty waivers, concessions and grants.

It also advised that “the current patronage system that hampers fair economic competition and performance should be stopped, and that totally undeserving firms and companies that illegally enjoyed customs duty waivers, concessions and grants procured through flagrant abuse of executive powers must be made to refund such huge revenue losses to the federation and appropriate sanctions meted out to them for economic sabotage”.