Palm oil: Stakeholders reject Olam importation under ETLS

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Oil palm stakeholders at a meeting held yesterday

   * Ask FG to collect 35% duty tax

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”