FG loses N5trn to import waivers, reveals Budget and Economic Planning Minister
The Federal Government has lost over N5trn to open-ended import duty waivers granted to companies and manufacturers engaged in various forms of importation over the past few years
The Minister of State for Budget and Economic Planning, Prince Clem Ikanade Agba disclosed this yesterday in Kano during an official visit to NUTRI K, a Dangote subsidiary engaged in the production of ready-to-use therapeutic food in the State
He explained that government only recently discovered that many companies which were granted such waivers had no timeline within which they were to revert to payment of the requisite duty.
He said that in some cases, some of these companies would introduce additional import products which were not captured in the initial government waiver without the consent of the government, disclosing that already his ministry had taken up the matter with the legislators with a view to working out modalities for import waivers to be bound by a time sufficient for a start-up manufacturer to find its feat in the market place.
Addressing management of the company, Agba said government would look into their challenges by way of policies that would support their import ambition but added that the intervention would be for a specific timeline.
He assured that government was committed to reducing costs of production for local manufacturers in line with its stand to promote their growth in the overall interest of the economy.
He, however, charged the company to look inwards and be less import dependent as excessive importation was responsible for tweaking of the strength of the Naira against the Dollar.
In his address, Managing Director of the company, Abudulkadir Yowe explained that apart from groundnut for which they had an understanding with some out-growers from Kebbi State, the rest of the raw materials were imported from outside Nigeria, adding that they were also affected by the cost of energy in Nigeria all of which combined to make the prices their selling prices less competitive in the global market.
He appealed to the federal government to assist them to be able to beat down their selling prices.
Media Report
