FG Still Grants Rice, Palm Oil Waivers

The House of Representatives and the Federal Ministry of Finance are in disagreement over import waivers on rice and palm oil granted to some individuals from January to 2012 to May 2012, after the Minister of Finance announced the suspension of such waivers in September lastyear.
Chairman House Committee on Finance Abdulmumin Jibrin said on Thursday July 19, 2012, during a debate on the alleged non-implementation of the 2012 budget by the Federal Government at the plenary session of the House that documents submitted to his committee by the Federal Ministry of Finance, Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) indicate that the government was still granting import waivers to some fewindividuals to import such items despite policy stopping it.
He said analysis of the documents shows that“on the average, the government has grantedminimum of N2 billion waivers per month from January to date to import rice, palm and vegetable oil”, adding that in the month of May 2012 alone, the government granted N39 billion waivers to some few individuals.
But Mr. Paul Nwabuikwu, the Senior Special Assistant on media to Minister of Finance Dr. Ngozi Okonjo-Iweala told Daily Trust on telephone yesterday that no such waivers were given after the policy statement last year.
“I can tell you authoritatively that between January and May, no such waivers were given,” he said.
Nwabuikwu said the only waivers given within the period were the regular ones givento ‘companies that use Nigerian gas to power;to companies that purchase police and military equipments and to development partners like nongovernmental organisation (NGOs) in the area of health. He also said waivers are given to returning Nigerian diplomats.
On September 22nd 2011, Finance Minister and Coordinating Minister of the Economy Dr. Ngozi Okonjo-Iweala said that waiver requests would from then be granted by the ministry and sent to the Economic Team for consideration.
She said in Washington DC, at a seminar that,“all those who usually go to see the Presidentat night will no longer be allowed to do so. If they have any proposal, it must be presentedto the Economic Team. We are also going to hold a retreat with the private sector to discuss policy inconsistencies caused by the pressure they exert on the government.”
On 30th November 2011, Daily Trust exclusively reported that the Federal Government granted rice and palm oil import waivers amounting to about N150 billion to 10 companies, with one of them securing the duty write offs 164 times since February 2011.
The companies that previously benefitted from import waivers include Connotation Concepts Limited, which registered its nature of business as ‘Bookshops and Stationery Stores; Energy Resources Management Limited.’ The company got rice import waiverapprovals 34 times.
Other beneficiaries are Network Supplies Limited which got rice import duty waivers 36times that year amounting to N5billion in taxes; Olam Nigeria Limited, Presco Industries Limited and Sopon Nigeria Limited.
Speaking on the floor of the House during thedebate last week, Rep Jibrin also reeled out figures from the various revenue generating agencies indicating that there have been ‘unprecedented increase’ in revenue generation in the first six months of 2012; surpassing the budgetary projection by about30 percent.
He said such revenues are from the Nigeria Customs Service, Federal Inland Revenue Service, Nigeria National Petroleum Corporation and the Department of Petroleum Resources.
“Some people are determined to put it in ourpsyche that Nigeria does not have money. We are left with only one option which is to compel the executive to do the right thing,” Jibrin said.
The National Assembly is currently embroiledin dispute over the implementation of the 2012 budget, with the lawmakers threatening consequences should President Goodluck Jonathan fail to implement the budget hundred per cent by September 18, 2012.
But yesterday, Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe said that no country achieves 100 percent budget implementation.
Okupe who is reacting to National Assembly-Presidency’s face-off over budget implementation told reporters in Abuja that that he sees the current misunderstanding between the members of the NASS and the Federal Government, especially the Minister of Finance as something that is not very healthy and not necessary.”
The finance minister has insisted that the budget has been implemented 56 per cent but the National Assembly believes that less than 40 per cent has been implemented.