Rice import waiver: Senate Adhoc orders Ebony Agro to pay 228 million naira.

President Muhammadu Buhari

All effort of the Chairman of the Ebony Agro Limited Nigeria, the former minister of commerce and industry, Mr. Charles Ugwu under President late Yar’adua fell into deaf ears of the Senate Adhoc committee on waiver, concession and grants as Senator Adamu Aliero ordered that the company should pay N228million to government cover being a penalty for importing 10,000 metric tons higher its allotted allocation just as the same applied to other companies. 

The company chairman, Mr. Charles Ugwu who admitted the offence however passionately pleaded that the company be forgiven being the first indigenous company that responded to local production of milled rice to mitigate challenges of paddy off takers from farmers saying his company did not import finished rice but rather processed rice adding the payment can affect the production operation of the company for now.

All the members of the committee unanimous agreed that there is nothing the committee could do to favour any company that has not conformed to quality of waivers given as Senators Olugbenga Aishafa and Alasoadura said the rule cannot be bent for any company rather than doing the right things as demanded by the Federal government levy rules and laws.

In his chat with NTA, the Chairman, Adhoc Committee on waiver, concession and grant on food import, Sen. Adamu Aliero said that all effort would be made to ensure all necessary revenue of the Federal Government through the custom duty back to her cover stressed many of the waiver do not follow due process as there was no basis for food importation our farmers can produce.

Sen. Aliero pointed that companies who are producing what we cannot will still enjoy waiver benefits as long as there is status permit that guarantee them the bringing of goods that are duty bound.

He said that “but unfortunately it was discovered that the traffic were never consulted right from 2011 up till now. These waivers are just issued without recourse to due process and that is why there is a lot of abuses associated to it and we are hoping to come out with good recommendation that will stop abuses and allow due process to be followed in giving probity waivers. That is what we want to do. 

There are waives that are good. For example an industry that is coming to Nigeria for the first time to manufacture goods or services that is not available in the country. And normally they are entitled to bring in goods that are duty free and such thing is designed for the economy which is good for us as it is allowed. First, the goods are not what we can manufacture, and secondly, if they come and establish industry, they will provide employment for Nigerians and this is one of the incentives used by most of the developing countries and Nigeria should not be an exception. 

We are desirous that waiver should be issued but against the indiscriminately issue of waivers that are extended to consumable that could be produced locally. I give you example; there is no point in giving waiver to rice. We can produce rice locally. We have farmers, land and to be honestly with you, we can equally feed ourselves. By giving waiver, you are more or less discouraging the local farmers because our farmers cannot compete with farmers in India, Thailand in terms of facility you can ever think of like R&T Research Development unit are up to date”.

Both Messrs Stallion Group and Olam International which were both involved in rice importation running to the tune of N44billion naira as debt being for import duties on 457,000 metric tons of rice since last year May has also been ordered by the Senate Committee chairman to pay without delay saying “Nigeria will not fold hands and watch the huge debt swept under the carpet. 

There is no way government will ignore this kind of money. We have to ensure that this money is collected and deposited into the Federation Account”.

The companies’ allegation according to Sen. Aliero was that they imported rice into the country without paying waiver, off-loaded it into their warehouses and refused to pay the required duties when asked by the Customs authority adding that instead of payment Stallion group decided to take court action agains NCS. He accused the company of exceeding the import quota of 157,000 to 457,000. 

Defending the company, the Executive Director of Stallion Group, Harpreet Singh said that their mission in Nigeria was to ensure the country’s food sufficiency in rice production saying the nation’s borders were porous and that the former President, Dr. Goodluck Jonathan had granted the approval based on rice fiscal policy on May 2014.