The application
requesting Federal Government (FG) for the importation of ninety five (95,000)
metric tons of crude palm and other affiliated finished products running to
billions of dollars under the covers of the ECOWAS Trade Liberalization Scheme
(ETLS) by Olam Nigeria Limited, an Indian agro based company in the country may
have hit the rock as major indigenous stakeholders have out rightly rejected
the proposal saying all importers must pay the agreed 35% duty tax without ETLS
exception that would short change the nation’s economy.
Oil palm stakeholders
at a meeting held yesterday at the instance of the Federal Ministry of Finance
under the leadership of the minister, Mrs. Kemi Adeosun unanimously rejected
the request for ETLS import cover by Olam Nigeria Limited saying the waiver of
35% duty was retrogressive to the FG backward integration policy, added giving
such offer would lead to creating a non level playing ground for others in the
sub sector.
ETLS implies
that waiver will be given without any custom duty and other taxes associated to
all the items as listed in the application presented to the Federal Ministry of
Finance (FMF) by Olam Nigeria Limited.
One of the
stakeholders, the President, National Palm Produce, Engr. Henry Olatujoye who
attended the meeting told Food Farms News
that the spirit of the poor farmers and entire Nigerians would not forgive
anybody that will grant ETLS waiver to Olam Nigeria Limited to import crude
palm oil and any other finished product that are avaliable in the country
looking for market.
Engr. Olatujoye
querried the position of the Olam on the shortage of crude palm oil in the
country saying there had never been such complaint by Nigerians wondering where
the theory of shortage of the produce would have come, pointed that anybody
that wanted to import should just leave government out of it by ensuring
payment of 35% duty tax for the purpose of leveraging the local production
prices and the development through local productivity.
According to
Olatujoye “this request by Olam to Federal Ministry of Finance is a deliberate
act to kill the backward integration policy of the FG if the application is
granted as the market will be flooded with all manners of crude palm oil at the
detriment of local producers and refiners. Honestly it is a slap on us for a
foreigner to stand before our finance ministry and be dictating to us what is
not true. And this is what Olam has just done today. How did it come to the
conclusion of scarcity of crude palm oil in Nigeria when all countries of the
world have their drying seasons? The story about shortage of hectares of land
for cultivation in Nigeria is not true”
He also
lamented on quantity of 95,000 metric tons crude palm oil valued at N6.6
billion that would be imported from Ivory Coast that has an annual production
of 300,000 metric tons with local consumption of 250,000 saying where on earth
could Olam get such a quantity in the whole of West Africa countries if it has
not gotten an hidden agenda of taking undue advantage of our nation’s economy
at the detriment of other players.
Engr. Olatujoye
pointed further that the most disgusting one was the additional request for the
importation of some finished items which are among the import prohibition list
stressed that Olam should copy PZ Wilma Nigeria Limited who had about 7,000
hectares for plantation thereby following the backward integration policy of
the government for more job creation and wealth. The issue of shortage of land
for planation was not true.
“I am very
disturbed at the list of what Olam Nigeria limited wanted to bring into Nigeria
under ETLS. Apart from the 95,000 metric tons of crude palm oil, the annoying thing
is 50,000 metric tons of stearin, 60,000 metric tons of crude olein and 50 palm
fatty acids distillated, and all these are finished products that are available
in the country begging for markets.
There is no FG ban on crude palm oil. Let Olam
import crude palm oil, but they must pay the 35% duty tax and that is what they
want to evade. The other ones are prohibited items that must not be imported
because they are finished items. Except Olam wants to disobey the order. All the
other stakeholders in attendance agreed on the need for FG to support the palm
oil sector like they did for rice, cassava and cocoa through fund intervention with
a single digit and five years meritorium.
I am happy for the Federal Ministry
of Finance for convening the meeting which was well attended by PZ Wilma
representative, Okomu oil, Real oil, the owner of plantation forum, Federation
of Agricultural Commodities Association of Nigeria (FACAN) Vegetable and Edible
Oil Producers Association of Nigeria and NPAM”
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