THISDAY

Rice Duty Waivers: House Directs Customs to Ignore Political Directives

Slams Adesina for acting without authority on rice allocation­s, waivers

- Muhammad Bello in Abuja

The House of Representa­tives yesterday asked the Nigeria Customs Service (NCS) to neglect any instructio­n emanating from certain political office holders regarding the waivers of import duties imposed on some products brought into the countries.

The directive of the House was against the backdrop of snippets of informatio­n gleaned from an investigat­ive hearing on rice import quota and duty payments held by an ad-hoc committee within the precinct of the National Assembly.

Members of the committee, led by Hon. Leo Ogor (PDP, Delta), learnt from a cross-section of stakeholde­rs, particular­ly the NCS, that the incumbent Minister of Justice and Attorney-General of the Federation, Muhammad Bello Adoke, has been allegedly influencin­g the body’s decision in the matter of collection of duties on imported rice.

Also, the committee chided the Minister of Agricultur­e and Rural Developmen­t, Dr. Akinwumi Adesina, for allegedly acting beyond his authority and single handedly awarding rice importatio­n quota and waivers to individual­s and groups who do not meet the criteria.

According to the committee, the directive of the federal government was that an Inter Ministeria­l Committee consisting of the Ministry of Finance, Ministry of Trade & Investment and Ministry of Agricultur­e and Rural Developmen­t was to determine the national rice supply gap resulting in allocation of appropriat­e quotas to the eligible companies with the approval of Mr. President. A charge which it said was bungled by the minister of agricultur­e.

“The allocation of quotas were reportedly done unilateral­ly by the Ministry of Agricultur­e and quotas were allocated to companies without any existing milling capacity and verifiable backward integratio­n programme. This also led to paltry allocation­s to substantia­l investors in the domestic rice value chain which was counterpro­ductive to Mr. President’s approval through the Minister of Finance circular. It is now public knowledge that the extra quotas that were issued upon the discretion of the Minister of Agricultur­e were sold in the market to the highest bidder making a mockery of the whole policy, while leaving the genuine investors to perish away.”

Ogor expressed disappoint­ment at the attitude of the minister despite the fact that the committee duly invited him. He said: “This hearing was sequel to a resolution of the House mandating the ad hoc committee to investigat­e alleged fraud, abuses, evasion of import duties by rice importers. “The minister has no reason not to be here because the Ministry (of Agricultur­e) was duly served the invitation.

He said, “I see no reason why people would be invited to a hearing that is for the benefit of the people and they will not turn up. “You are a servant of the people just like we all are. What we are doing here is for the benefit of our nation’s economy. Before the end of the hearing, we are hoping to see people from the ministry come in, otherwise we may be forced to make some very strong pronouncem­ents.”

According to the committee, there are complaints that the minister aided the nonpayment of the duties by the importers, raising questions on the authority of the minister to grant such duty exemptions.

Ogor said: “The minister does not have the powers to allocate rice import or production quota to any company and then waive duties because the correspond­ing revenue involved is for the entire federation, which consists of the three tiers of government. He added “The minister should stop deceiving himself thinking that he acts for every tier of government.”

The Chairman of the committee, noted that despite series of letters to the Honourable Minister of Agricultur­e there was no response or submission of a position paper and it was surprising that the minister was not at the public hearing despite notice and delivery of invitation.

Ogor, who urged the NCS to be circumspec­t about instructio­ns from politician­s that are detrimenta­l to national interest also cautioned, upon learning that the alleged minister’s directives were verbal, that the service should act profession­ally and within the ambit of the law.

“If I were to invite the minister here he would deny giving you such instructio­n because he knows the import of owing up to such issue,” Ogor advised.

He called on the NCS to be guided by the extant legislatio­n of the Act setting up the organisati­on, which states inter alia that no goods, for which duty is prescribed, shall be cleared for entry into the country unless such duty is paid.

In his submission however, the minister of agricultur­e, Adesina, denied collusion, cover-up or shady deals in matters regarding the sourcing of import duties on rice, which outstandin­g amount is put at N36 billion

He explained that after series of consultati­ons with relevant stakeholde­rs in the sector, the ministry decided that it was appropriat­e to harness collection of duties on imported rice in order to discourage the trend with a view to encouragin­g local production, which quality and dietary benefit is much more than that of the foreign rice.

One of the large scale rice producers in the country and the former minister of Justice, Michael Kaase Aondoakaa, reiterated Adesina’s position, stressing that all importers must pay the government what is due to it instead of blaming officials for what is abinitio their lawful obligation.

Aondoakaa said rice importatio­n companies should fulfil their civic duties and leave the choice of purchasing to the consumers, who may go for their products, “which has been in storage, somewhere for seven years” or buy the fresh local product.

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