The Nation Newspaper

Tag: import

  • We’re not denying import waivers, says ministry

    •NGOs urged to follow laid down procedures

    The Federal Ministry of Finance has denied claims that it has refused to grant import duty waivers for the importation of drugs and health commodities into the country.

    A statement from the ministry yesterday in Abuja said there “are laid down statutory procedures governing the granting of import duty waivers to importers and Non-Governmental Organisations (NGOs), which are part of holistic measures put in place to check abuses of the Federal Government’s fiscal incentives and to put a halt to rampart corrupt practices in the economic sector”.

    The ministry, which is the government’s body that grants import waivers, lamented that it recently observed “flagrant abuse of the import duty waivers by some NGOs and importers, who smuggled other imported items into approved waivers issued for the importation of medical equipment and drug-related items”.

    It added that it has “observed that some importers and NGOs engage in the sale of imported drug items, which are meant to be distributed to the public free after being granted import duty exemption by the government.”

    This, the ministry said, “is in contravention of the provisions of Section 46 of the Customs and Excise Management Act (CEMA) of 1958 (as amended)”.

    It highlighted the procedures for granting import waivers as including “submission of an application by the importer and NGO to the Federal Ministry of Finance through the Federal Ministry of Health; evidence of registration with the Corporate Affairs Commission; submission of an approved Memorandum of Understanding duly signed by the minister or the Minister of State, Budget and National Planning between the donor agencies, the Federal Government and the recipient-NGOs”.

    It, however, warned that it would not succumb to cheap blackmail and acts of economic sabotage under the guise of the delivery of health services to the people.

  • No import waivers denial, says Fed Govt

    The Federal Government has not refused to grant import duty waivers for the importation of drugs and health commodities into the country.

    In a statement, the Federal Ministry of Finance, said there are laid down statutory procedures governing the granting of import duty waivers to importers and NGOs. It said these are part of holistic measures put in place to check abuses of the Federal Government’s fiscal incentives and to put a halt to rampart corrupt practices in the economic sector.

    The statement, signed by the Director of Information, Salisu Na’inna Dambatta, lamented that the ministry has recently observed the “flagrant abuse of the import duty waivers by some NGOs and importers, who smuggled other imported items into approved waivers issued for the importation of medical equipment and drug related items.”

    It said this practice, “is in contravention of the provisions of Section 46 of the Customs and Excise Management Act (CEMA) of 1958 (as amended).”

    The ministry listed the procedures for granting import waivers to include “submission of an application by the importer and NGO to the Federal Ministry of Finance through the Federal Ministry of Health; evidence of registration with the Corporate Affairs Commission; submission of an approved Memorandum of Understanding duly signed by the Honourable or the Honourable Minister of State, Budget and National Planning between the Donor Agencies, Federal Government of Nigeria and the Recipient-NGOs.”

    Other demands include, “presentation of a certificate of exemption from tax from the Federal Inland Revenue Service (only for those who engage in non-profit making activities in line with their objectives), submission of a proforma invoice, indicating the value of the imported items, bill of laden and if the imported items are donated, the NGOs are required to provide the Federal Ministry of Finance with authenticated letter from the donor agencies.”

    It said additional documentation may also be required where the need arises.

  • Reps investigate Customs import waivers

    Lawmakers in the Green Chamber yesterday mandated its Customs and Excise Committee to investigate the handling of import duty revenues, waivers and bonds on import duties collected by the Nigeria Customs Service (NCS) from 2010 till date.

    The resolution was sequel to the passage of the prayers of a motion sponsored by a member, Hon. James Abiodun Faleke (APC, Lagos) and 14 others.

    The committee is also mandated to “determine the nature and extent of abuse of the Customs Pre-Arrival Assessment Reports (PAAR) by importers and officials of the Customs Service in order to recover the revenues due to the Federal Government but  which were not paid.”

    The House further empowered the committee to probe the abuse of import duty waivers given by the Federal Ministry of Finance and its effects on the economy and identify the companies or individuals that have refused to redeem the bonds even after clearing their imports.

    The committee is to conclude its assignment and report back to to the House within 90 days for further legislative action.

    While moving the motion, Faleke said that except those that were granted waivers and are on the prohibited list, the Nigeria Customs Service is mandated, among other things, to collect duties on all goods imported into Nigeria.

    He said: “the Nigeria Customs Service customarily issues Pre-Arrival Assessment Reports which are used to assess duties payable on imported goods but the Reports are sometimes compromised by importers, thereby leading to under payment of duties in billions of Naira;

    “The Ministry of Finance gave series of duty waivers to companies in line with the policy of government to assist businesses, but in most cases, the waivers were used to import goods not listed on the approval, thereby depriving the government of the needed revenues;.”

    “Some importers, most times, issue bank and/or insurance bonds to Nigeria Customs Service in lieu of duty payments to enable the importers clear the imported goods immediately and thereafter expected to redeem the bonds by paying the appropriate duty rates, but information reveals that the Bonds are either partially redeemed or never redeemed at all.”

    According to the lawmaker,   the inability of the federal government to finance the 2017 budget and meet its other obligations made the ministry of finance to source for funds from local Banks and the capital market through “sukuk” etc., meanwhile there are leakages in revenue collections by the Nigeria Customs Service.

  • Ecobank supports import, export trade

    Ecobank Nigeria has organised customer forum for exporters and importers targeted at boosting trade and commerce in the country.   The Country Head, Commercial Banking, Ecobank Nigeria, Rotimi Morohunfola, said the forum is one of the several avenues by the bank to support promoters and stakeholders in export and import business.

    He explained that the engagement which was basically an interactive session afforded the Bank the opportunity to obtain feedback from participants with a view to serving them better. According to him, “We take into cognizance the role of exporters and importers in the economy. The economy is largely driven by trade. That was why we decided to hold this forum to engage our customers, feel their pulse, and also bring in the regulators like Central Bank of Nigeria (CBN) to build capacity and further enlighten them on new trends and market practices.”

    Morohunfola re-assured participants of the bank’s determination to support them at all times, urging them to continue to do business with the bank.

    Presentations were made by Transaction Services Group, Treasury and Trade Operation departments of the bank. On support for small businesses, Head, SME, Commercial Banking, Ecobank Nigeria, Sunkanmi Olowo, said the Bank had put in place several initiatives to promote small and medium enterprises (SMEs). According to him, “Ecobank is commonly regarded as SME friendly bank.

    Deputy Director, Trade and Exchange department, CBN, Olu Vincent, applauded Ecobank for holding the forum. He enlightened participants on various measures to achieve seamless transactions.

  • PPMC urges marketers to import fuel

    Oil marketers should complement the Federal Government’s efforts at improving supply of petroleum products in the country, the Petroleum Products Marketing Company (PPMC), Managing Director, Alhaji Umar Ajiya, has said.

    He said the development would help in easing fuel supply and improve economic activities in the country.

    Speaking at the opening of a mega retail outlet built by Emadeb Energy Services Limited in Lagos, he said the Nigerian National Petroleum Corporation (NNPC) should not be the sole importer of fuel, if the country wants to get over the fuel scarcity and its attendant long queqe.

    He urged members of Independent Petroleum Marketers Association (IPMAN) and Major Oil Marketers Association (MOMAN) to improve importation and supply of fuel across the country.

    He said Emadeb has diversified its operation, by operating fuel depot and building retail outlets, advising other marketers to follow do so.

    The  Group Managing Director, Emadeb Energy Services Limited, Mr Adebowale Olujimi said the firm saw a vacuum in the downstream sub-sector and quickly filled it by building mega stations to supply fuel to motorists and other users.

  • Akeredolu: Nigeria spends N300b on bitumen import yearly

    Akeredolu: Nigeria spends N300b on bitumen import yearly

    Nigeria spends over N300billion on bitumen importation annually, Ondo State Governor Rotimi Akeredolu has said.

    He spoke during the inauguration of the board of the State Development and Investment Promotion Agency (ONDIPA) in Akure, the state capital.

    According to him, it is scandalous that the country spends such a huge amount on  bitumen importation when the state has a large deposit of the commodity, which if processed, can boost the nation’s foreign exchange.

    The governor said his major priority was to make the state the number one destination of investors by year 2020.

    He said he established ONDIPA to ensure that corporate organisations and businessmen interested in doing business in the state did their transactions without any hassles.

    Akeredolu announced that the first company for Bitumen Exploration and Processing in Nigeria would begin operation in the state before the middle of next year.

    “I want to use this opportunity to announce to this gathering that the first company for Bitumen Exploration and Processing in Nigeria will commence operation in our state before the middle of 2018. We are the largest producer of oil palm and cashew nut in South West,” he said.

    Assuring the investors of their safety in the state, Akeredolu said: “ONDIPA means business. The mandate of ONDIPA is to ensure that private sectors have no problem doing businesses in Ondo State. Today, you do not need to go to ministries to register your business and process papers, ONDIPA will do everything for you.’’

    “I want to assure investors that whatever Memorandum of Understanding (MoU) we sign with you will be fulfilled with sanctimonious attention. We would not compromise integrity.  In three years, I want to see Ondo being the number destination of investors in Nigeria. I want to export our cash crops and mineral resources to reduce pressure on our naira to boost our foreign exchange. My office is opened to investors. ONDIPA is open. The office of ONDIPA is even beside my office,” he further stated.

    The agency will be chaired by the governor while it will be directly supervised by his Special Adviser to the Governor on Development and Investment, Mr. Boye Oyewumi who will also double as the Vice-Chairman and Chief Executive Officer (CEO).

    Among the dignitaries at the event was the Minister of Solid Minerals, Dr. Kayode Fayemi, deputy governor, Hon. Agboola Ajayi and his wife, Secretary to the state Government, Hon. Ifedayo Abegunde, members of the state executive council, permanent secretaries and several other government functionaries.

    Also present at the occasion were the representative of the CBN governor, Godwin Emefiele, Mr. Omolola Adegbenga, Lagos lawyer and human rights activist, Mr. Femi Falana, Executive Director, Energy Renewal Division, Nigerian National Petroleum Corporation (NNPC), Alhaji Abdulahi Adamu, Director General, National Emergency Agency (NEMA, Alhaji Mustapha amongst others.

  • NACCIMA lauds SON’s support for export, import trade

    NACCIMA lauds SON’s support for export, import trade

    The National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has commended the Standards Organisation of Nigeria (SON)’s capacity development to support import and export.

    Its President, Iyalode Iyabo Alaba–Lawson, gave the commendation in Lagos while welcoming SON Director-General Mr. Osita Aboloma, to the inauguration of special committees of the association.

    She acknowledged the added value that SON internationally-accredited laboratories provide for import and export, particularly for agricultural products.

    Alaba–Lawson pledged NACCIMA’s support for the agency’s planned implementation of a products authentication scheme before the end of the year. She noted that such scheme was long overdue to tackle the challenge of products cloning and adulteration.

    According to her, the long-standing collaboration between SON and NACCIMA will be further enhanced during her tenure. She thanked Aboloma for his commitment to standardisation and quality assurance ideals.

    Aboloma sought the input of NACCIMA as a major stakeholder in the planned introduction of the products authentication scheme which will take off before the end of the year.

    He described NACCIMA members as critical stakeholders in standardisation, urging them to participate more in the development and review of Nigerian Industrial Standards (NIS) for products and services.

    Presenting a paper on “Importance of Quality Adherence to Imports/Exports in Nigeria” on the occasion, SON Head of Product Certification Mr. Tersoo Orngudwem, urged NACCIMA members to take optimum advantage of the SON internationally-accredited laboratories for import and export.

    This, according to him, will substantially reduce the incidence of export rejection and dumping of substandard products on Nigeria.

    Orngudwem said SON has over the years developed requisite capabilities in testing for export through its robust relationships with other national standards bodies across the globe as members of the International Organisation for Standardisation (ISO).

  • Raw materials import

    Raw materials import

    •Nigeria must pay more attention to backward integration 

    Talk of a country of multiple paradoxes – a leading commodity producer that spends a disproportionate huge amount of its foreign exchange on primary raw materials; a country caught in the wave of de-industrialisation, (a period marked by a severe decline in industrial activity) yet ironically gobbles more of scarce foreign exchange on raw materials. That is the story of Nigeria as told by the Raw Materials Research and Development Council (RMRDC) – the agency saddled with the task of research and development of local raw materials for industry. Nigeria, according to RMRDC, has in the last seven years, spent N19.5 trillion on raw material imports.

    For the six years – 2010 and 2015, RMRDC finds that cereals worth N2.49tn were imported into the country; plastics N1.88tn; articles of iron and steel used as raw materials consumed N1.59tn; so also are fish and crustacean, mollusc and other aquatic invertebrate – N1.28tn and rubber, which gulped N1.04tn. Also imported were sugar and sugar confectionery N897.23bn; dairy N692.37bn; paper N664.91bn. Others are organic chemicals N637.79bn; aluminium and articles of aluminium N470.76bn; pharmaceutical products N371.38bn; inorganic chemicals, N305.73bn; fertilisers, N237.13bn; and tomatoes, N102.69bn.

    However, year 2016 appeared to have taken the cake with mineral fuels, oils, waxes and bituminous sub gulping N1.12tn; cereals N301.08bn; fish and crustaceans – N206.43bn; paper, paperboard and articles of paper wood, N129.74bn; miscellaneous chemical products, N124.08bn; plastics, rubber and articles of plastic, N236.47bn; dairy, eggs, and honey, N134.31bn; and animal or vegetable fats, oil and waxes, N62.54bn.

    Broken down for the seven-year period, it comes to an average of N2.79tn per year.

    It is an all-too-familiar story of a country that would import rather than harness and develop what it has in abundance. Whether it is fish and crustaceans, dairy, eggs, and honey, or derivatives of petrochemicals like rubber or resins for making plastics, there is, clearly, no question that the nation is well endowed to produce a whole range of the products on which it currently shells out trillions of naira annually to import. Deeply troubling of course is that the huge raw materials import bill is neither reflective of serious industrial activities going on nor indicative of a boost in manufacturing capacity as we have seen in the years under reference.

    The flipside is the absence of a coherent plan to get the country out of the vicious cycle of dependence on both raw materials and finished products.

    It’s not hard to figure out the chief factor underlying the bleeding. As it is, imports – whether of raw materials – have grown to become a major avenue for repatriating capital abroad by firms operating locally. In the absence of a coherent industrial policy, the giant multinationals in particular, many of which at one time or the other enjoyed pioneer status for years, have demonstrated little or no appetite for backward integration or import substitution.

    The RMRDC has done well to draw attention to this lacuna. What the situation requires are drastic policy interventions to change the course. The current situation in which the country is forced to burn its candle from both ends is, to put it mildly – unsustainable. Working with the stakeholders, RMRDC should be able to evolve a raw materials blueprint with clear achievable timelines to get the country out of the current dependency mode while the Federal Government drives the process that would see massive cutbacks in imported raw materials in the medium and long run.

    This is not rocket science. For instance, the entire world seems to have recognised that there can be no talk of any meaningful industrial base without a petrochemical and iron and steel complex. Unfortunately, the Federal Government continues to act as if it does not matter. The same is just as true of our local dairy industries and other animal products, all of which in the absence of government support and patronage continue to lag behind. A good way to start is for the government to focus on these two key areas. With seriousness and commitment, it should be possible for a huge chunk of the bill currently spent on imports to be cut by half in a few years’ time.

  • Oyedepo laments Nigeria’s dependence on food import

    BISHOP, Living Faith Church (Winners Chapel) Worldwide, Bishop David Oyedepo, has described the country’s over-dependence on imported agriculture produce as dangerous.

    Oyedepo, lamented that   Nigeria that is blessed with abundant resources has no need for importing chickens. By doing so, he said, Nigeria has brought in diseases unknowingly with imported food.

    The senior cleric stated this in Omu-Aran, Irepodun Local Government Area of Kwara State, at the convocation lecture of Landmark University, Omu-Aran.

    He said neglecting agriculture is tantamount to mortgaging the future of Nigeria.

    Oyedepo said: “We must shift from theory to things that address human issues. We need to come back, to the real issues confronting use. We need to start creating solutions. A country that is enormously blessed as Nigeria has no basis to import chickens from any part of the world.

    “We must invest in agricultural service to create the future of our dream, and that is raw agric practices.

    “We can solve our problems if we are committed enough, but I don’t think we are that committed. Everybody must play his own part in solving the problem of food security in the world. Africa is the worst hit by the food insecurity ravaging the world. Let us give the people in other parts of the world the impression that Nigerians are thinking.”

    Earlier, the convocation lecturer, who is the Managing Partner, Sahel Capital AgriBusiness Managers, Menzuo Nwunei, said  Nigeria is not self-sufficient in food production, as it imports over 45 percent of its food needs.

    “Nigeria’s food imports have historically grown at a rate of 11 per cent per year. The country’s major dependence on food imports is hurting local production, reducing local farmers’ welfare and contributing to increasing unemployment,” Nwunei said.

    “Domestic inflation at about 18 per cent is fuelled in part, by the demand for expensive food imports. The demand for food imports has placed download pressure on the value of the naira and contributed to depleting foreign reserves,” he added

    He said Nigeria’s import dependency is uneconomically sustainable and, therefore, should be unacceptable.

    According to him, agriculture is the most important sector of  the  economy, but remains dominated by smallholder farmers who operate at a subsistence level.

    Quoting the Central Bank of Nigeria (CBN), the guest speaker said that between 2007 and last year, over $113 billion was the foreign investment in Nigeria.

    “Of and agribusiness-related investments, the preponderance of the investment went into activities outside the major cities. About $427 million was geared towards agribusiness-related investments,” he added.

    “Even with this increase in investment, over $5 billion is needed to provide required financing for farmers and agribusinesses,” he added.

  • ‘Govt to spend N3.4tr on petroleum products’ import’

    ‘Govt to spend N3.4tr on petroleum products’ import’

    • Requires $1.2b to fix refineries

    The Federal Government would spend N3.4trillion on the importation of petroleum products this year, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said.

    Kachikwu, who spoke yesterday in Abuja, denied reports ascribed to him that  government was concessioning its refineries.

    He said government has no plans to concession the refineries, but was only making arrangements for private financing of the their repairs, saying claims that Oando has won the contract for financing the repair of the refineries, is not true.

    He said Nigeria that currently consumes 35million litres daily, has domestic refining capacity of six million liters, which is about 25 per cent of the demand.

    He said: “The importation of products even between January and December of this year, amounts to 20million metric tonnes and amounting to N3.4 trillion. The logistic cost of that importation, shipping, clearing and all that is about N1.34trillion.”

    Kachikwu said owing to this domestic and demand situation, the government had to plan for the improvement of its domestic refining capacity, saying government raised a technical and steering committees on the financing of the refineries. He said the report will be presented to the National Assembly and Federal Executive Council upon conclusion.

    The minister said that from piping, about $1.1billion to $1.2billion (depending of the category), will be required to fix the refineries.

    His words: “Internally, we have been able to determine the amount we want to do this work, in terms of what work is required to be done. And the total cumulative amount, is the $1.1, $1.2b type category, depending on the refineries, with specific breakdown. That of course does not include the cost of piping.”

    On why government has decided to deal with Chioda, Sapiem and GGC, Kachikwu said that Chioda built Kaduna refinery, Sapiem built Warri refineries, while CGC built the PortHacourt refineries, stating that these companies, have the designs, engineering outlay and upgrade capability for the refineries.

    He said government opted for this arrangement because of rising cost, saying very few people will undertake the financing .  “So that is why we have created a business model that tie them to the Direct Sale, Direct Purchase (DSDP) Programme and that is still working and that is still work in progress.

    “When they finish this and are done with the analysis, I will expect that they will then invite everybody who is interested to the commercial terms, before we get to the Federal Executive Council, National Assembly and Mr. President. We haven’t reached there and so nobody can say contracts have been given.”

    Kachikwu advised the International Oil Companies to invest in building refineries in Nigeria in order to avoid the negative effects of dip in oil prices.

    More importantly, he said, “we need to address IOCs in terms of what they need to do to help local refining, because if you encourage all these refining capabilities whenever they run out of crude availability, we need to look at them, why are you taking out crude when you can get the same pricing equivalent in local refining.”