The Nation Newspaper

Tag: Waiver

  • Waiver abuse

    Waiver abuse

    •Those who benefited from the illegality must return the money  

    Last week, the Senate adopted the report of its ad hoc committee on import duty waivers, concessions and grants. It was, in every respect, a confirmation of what Nigerians already know of the grand bazaar that the Jonathan administration turned the import duty waivers scheme. Among its key findings was that the nation lost N447.45 billion to import duty waivers and concessions between 2011 and 2015. Notably, the waivers were said to have been flagrantly granted by ministries, departments and agencies of the Federal Government to six companies in disregard of extant rules between 2013 and 2015.

    Another 27 companies were said to have benefited from the import quota granted to rice importers, with total allocation of 1,434,658 metric tonnes, of which four were yet to remit N23.603 billion to the Federal Government, being the duties on rice that they imported.

    In the sugar sector, N17.41 billion waivers, concessions and grants were granted between 2011 and 2012, just as Minister of Industries, Trade and Investment, Olusegun Aganga, reportedly granted waivers to Coscharis Motors to import 897 vehicles and Globe Motors 714 vehicles in 2015.

    Describing the granting of the waivers to select companies as “an unconscionable trade practice, which creates unfair competition and robs the Nigerian economy of badly needed funds”, the committee specifically charged the Budget Office of the Federation of using the import duty waiver scheme to entrench “a very destructive patronage system” in which very few operators in the economy were singled out for favours.

    The committee  recommended, among others, severe sanctions against companies found to have benefited from import duty waivers, concessions and grants, particularly those said to ‘engage in acts of economic sabotage by diverting some vessels to neighbouring countries of Benin and Niger Republics for the commodities to be smuggled into Nigeria through land borders”;  recovery of N10.3 billion from six companies that benefited from rice importation quota in 2014 – the latter for not meeting the criteria for granting the waivers.

    Considering that the lower house, the House of Representatives only last week similarly mandated its committees on public account and finance to investigate the incentives being granted to foreign investors said to cost the nation $2.9billion yearly, it seems to us that the Federal Government will need to take a holistic view of the nation’s business incentives. Just like its Senate counterpart, the worry of the House is that tax incentives granted to foreign investors, designed to stimulate the country’s economic growth have failed to achieve their intended purposes.

    At this stage, we can only urge the Federal Government to take the findings and recommendations very seriously. Clearly, those found to have exploited the privilege of their connections to highly placed officials to abuse public trust should be made to pay back every kobo into the treasury.  At this time of severe economic crisis, the nation must recover every dime of public fund illegally held under whatever guise.

    Beyond that is the need to ensure that such abuses are prevented in the future. Again, we must say that the problem is not necessarily duty waivers and tax incentives per se. As we have argued before, they are sometimes needed to attract investment and hence stimulate the economy. The real challenge is to ensure that they are not abused.

    Should the Federal Government deem it fit to continue with the waiver policy, it should make the rules transparent and the application even-handed as to leave officials with limited discretions. A monitoring mechanism to ensure that the beneficiaries deliver on key objectives has, in the circumstance, become a sine qua non.

     

  • Tambuwal advocates no waiver for rice importation

    Tambuwal advocates no waiver for rice importation

    Sokoto State Governor Aminu Waziri Tambuwal has observed that local rice production is being hampered by the current waiver enjoyed by importers of the commodity, calling on the federal government to phase it out.

    The governor spoke yesterday in Sokoto when he received the new Customs Area Controller for Sokoto, Zamfara and Kebbi states, Alhaji Muhammad Kabir while on a courtesy call on him in his office.

    According to Tambuwal” the current waiver regime being enjoyed by rice importers is grossly hampering local production of the commodity and should be phased out.”

    He noted that preliminary studies undertaken showed that despite efforts to boost local rice production, unfavourable government policies especially with regards to waiver to importers, coupled with other policies, is proving to be impediment to states’ objectives to achieve local self-sufficiency.

    Tambuwal further reiterated the fact that the quality of rice produced locally is of international standard and far better than many of the ones imported into the country.

    He said the state government will continue to support farmers in rice producing areas by ensuring that they  acquire standard modern facilities that will process their produce.

  • US tightens visa waiver programme

    The United States yesterday in Washington, announced tighter security measures for visitors from the 38 countries in its visa waiver programme.

    The Department of Homeland Security said the countries included European nations that have seen hundreds of residents traveling to fight with militant groups in Syria and Iraq.

    It said the changes required the use of e-passports or paper passports that contain chips carrying biometric information and expand use of U.S. air marshals on international flights.

    Meanwhile, some U.S. lawmakers have been urging tighter restrictions on the waiver program which allows citizens from participating countries to enter the U.S. without a visa for stays of 90 days or less.

    U.S. Senator Dianne Feinstein, the top Democrat on the Senate Intelligence Committee, has criticized the programme as vulnerable to abuse, calling it “the Achilles heel” of American efforts to stave off attacks on its soil.

    The U.S. intelligence community assessed in February that more than 20,000 foreign fighters, including at least 3,400 westerners, had traveled to the Syria-Iraq region since 2011.

    The International Center for the Study of Radicalization said Western fighters in Syria and Iraq have found some of their most willing recruits in Belgium, France and Britain.

    The centre said the three countries participated in the visa waiver program, as do many European countries.

    Jeh Johnson, Homeland Security Secretary, said in a statement announcing the changes that the current global threat environment required the need to know more about those travelling the U.S.

    He said it includes those from countries for which U.S.do not require a visa.

    Johnson said the new restrictions also require that participating countries use an international database to screen for lost and stolen passports.

    He said the changes build on measures taken in 2014 to require additional information on the application people in visa waiver countries provided to travel to the U.S.

    The U.S. Travel Association, an industry group, welcomed the passport security and air marshal changes, but said it would evaluate other ones, including the development of passenger record databases and the screening of asylum-seekers.

    Roger Dow, Association President, said though security should always be its first principle, it is well worth keeping in mind how the American economy and job creation benefit when the (visa waiver programme) functions well.

  • Our waiver followed due process, says Seplat chief

    Seplat Petroleum Develop-ment Company Plc has clarified reports that it benefited from improper tax waivers granted by the Federal Government, saying the company followed due process and used the incentive to grow the economy.

    Seplat said it is its policy not to comment on statements or business dealings with the government, but, however, deemed it necessary to clarify its position on this matter.

    The company’s Chief Executive Officer, Austin Avuru noted: “In 2013, SEPLAT applied for pioneer status incentive through the Nigerian Investment Promotion Council (NIPC) as the government body responsible for investment promotion. The company followed the prescribed process for application and provided all the information and documentation required in support of the application.”

    It also noted that the incentive was part of an exercise for the industry and that the company was one out of 15 oil and gas firms that were granted the pioneer tax incentive.

    “SEPLAT believes that it is an excellent example of the whole purpose of establishing the pioneer incentive scheme. The company has fully re-invested the tax savings from the grant and has delivered verifiable results thereto. SEPLAT is now a key supplier of gas to the domestic market which is the direct outcome of the pioneer incentive granted to SEPLAT and aims to continue to contribute meaningfully to the growth and development of the Nigerian economy.”

    On the benefits from the tax holiday to the economy, Seplat said the grant of pioneer status has made it possible for the company to boost oil and gas production, provide employment opportunities, impact on their communities and help grow the economy.

     

  • N36b rice scam: I didn’t grant waiver, Adesina tells Reps’ panel

    N36b rice scam: I didn’t grant waiver, Adesina tells Reps’ panel

    •Okonjo-Iweala shuns committee again

    THE Minister of Agriculture and Rural Development, Akinwumi Adesina, has denied granting illegal waivers to rice importers under a Federal Government policy on rice.

    The government has also suspended allocation quota for participants under the 2014 to 2017 Fiscal Measures on Rice.

    The minister said enough consultation with all stakeholders has not been made on the allocation and consequently, the 2015 allocation quota would be put on hold.

    Adesina appeared before House of Representatives ad hoc committee on rice import quota and duty payments yesterday, where he denied giving approval for waivers to rice importers under the rice policy.

    The policy was to encourage self-sufficiency and development of local capacity in rice production.

    The minister told the Leo-Ogor-led committee that he blew the whistle on importers that owed the Federal Government through non-payment of duty amounting to N36 billion.

    “I did not grant waiver to any company. I have always been for whoever owes the government must pay the government, and there should not be an exemption. I raised the issue because the money belonged to the government,” he said.

    Adesina faulted reasons given by some of the companies under the policy that they imported rice in excess of their anticipated official allocation quota because the approval came late.

    He said such reason was not tenable, adding: ”It is wrong to import before allocation. The importers – that is rice millers and investors under the policy – said they reached gentleman agreement with the Nigerian Customs Service (NCS) that they will pay for the excess rice imported.”

    He implored the NCS to be more proactive in the implementation of the service end of the policy by collecting required duty and levy from importers to the letter as and when due.

    He said the nation would be self-sufficient in rice production and would be able to export, if the policy is not manipulated.

    The NCS said it has detained two vessels belonging to Popular Foods, one of the beneficiaries of the policy that imported almost 600,000 metric tons of rice, instead of its official allocation of 85,000.

    It said the detention was over issues concerning corporate indemnity and bank guarantee.

    Reacting to Popular Foods’ complain of being allocated “paltry” 85,000 metric tons of rice under the scheme,  Chairman of the Committee, Leo Ogor, said the House would not fold its arms and allow foreign companies to undermine the country’s industrial and economic growth.

    “Things you cannot do outside this country or in your country won’t be allowed to happen here. If you want to work here, you must meet up with all our obligations. It is our duty to protect our people. The committee is in agreement that further approval for allocation quota is suspended, but 2014 allocations can continue,” he added.

    The Minister of Finance, Ngozi Okonjo-Iweala; Trade and Investment Minister Olusegun Aganga as well as the Attorney General of the Federation and Minister of Justice, Mohammed Adoke, failed to turn up for the hearing.

    The Finance Ministry, however, submitted a written presentation to the committee.

     

     

  • Waiver bonanza goes on

    Waiver bonanza goes on

    •List of latest beneficiaries shows nothing has changed

    IF Nigerians needed proof that the import duty racket was alive and well, the latest report showing the Federal Government as granting N25.8 billion in waivers over a five-month period this year should be proof enough. Indeed, if it seems any consolation that this may not come close to the preceding three-year (2011-13) an average of N478 billion yearly, the return appearance of some companies on the beneficiaries’ list would seem a measure of how very little has changed in terms of the attitudes which underlie the administration of the waiver regime.

    Obviously, old habits die hard. For, how else can one explain the case of Globe Motors said to have got a waiver of N991 million for the import of the 290 cars used for the World Economic Forum in Africa? In 2012, it was Coscharis Motors securing the same largesse for the 200 exotic cars it supplied for the 7th African First Ladies Peace Mission (AFLPM) summit in Abuja.

    Another incongruity on the list was the FCT administration said to have received waivers to import “specialised items such as customs made carpets, timber dining chairs” for the presidential banquet hall. Compare this with Borno State government said to have got N984.79 million waivers for agricultural machineries. With such notable examples, Nigerians cannot but wonder if indeed anything has changed.

    The examples highlighted above obviously illustrate what is oftentimes the disjunction between objectives as advertised by government and the specific application of the policy.  But then, there is even a more worrisome dimension which the government continues to act as if to wish it away either because it is too embarrassed to admit, or it has no defence to offer – the discrepancy between the Nigeria Customs Service cumulative waivers record of N1.4 trillion for the period 2011-13 and the finance minister’s version of N170 billion for the same period.

    That discrepancy, till date, has not been satisfactorily explained. Indeed, the suggestion is that the minister has since moved on, hence her boast in her ‘new’ regime of “a sector-wide waiver to provide specific incentives for some strategic and job-creating sectors” as against the ancien regime “when waivers were granted to individual businesses, which resulted in rent-seeking behaviours and an uneven playing field for other businesses”.

    We do not accept that the best way to drive public policy is to ignore the past or simply dismiss it as gone forever. And who says that same ignoble past would not be repeated at great costs to the economy? Nigerians obviously deserve the benefit of knowing the factors responsible for the discrepancy and who the beneficiaries are.

    At a more fundamental level, we believe the challenge goes beyond merely stating that the waivers would serve the public cause.  We have no doubt that it could, if and when strategically applied. Just as we understand that there would never be shortage of good intentions behind every public policy; the challenge is how to measure their specific impacts in terms of employment generation and the various linkages to the economy.

    This is where the Federal Government has more work to do. It goes beyond the routine of making the names of beneficiaries of the duty waivers public. As important as that is, it is also our view that the process is best served when the beneficiaries are challenged to demonstrate how the waivers they enjoyed have impacted on the economy in specific areas of capacity enhancement, employment creation, and in equitable pricing as against being another line item on the company’s bottom-line.

  • Waiver request for Ribadu splits PDP

    Waiver request for Ribadu splits PDP

    There is tension in the Peoples Democratic Party(PDP) over a waiver request for  a former Chairman of the Economic and Financial Crimes Commission(EFCC), Mallam Nuhu Ribadu, ex-Military Administrator of Lagos State Brig-Gen. Buba Marwa and  former governorship aspirant Mr. Marcus Gundiri.

    The waiver will enable Ribadu, who  obtained his membership of the party on Saturday, and the others to collect the party’s governorship nomination form, which closes tomorrow.

    Ribadu’s waiver request has split the National Working Committee of the party and created a wedge between the Adamawa State chapter and the National Secretariat.

    The Adamawa State chapter is demanding a written request to it by the National Secretariat for waiver for Ribadu.

    The state chapter insists that the waiver should cover Gen. Marwa and Mr. Gundiri to create a level-playing field for all.

    According to sources, PDP National Chairman Alhaji Adamu Mu’azu, through an emissary on Saturday, asked the state chapter of the party to request for a waiver for Ribadu.

    But State Chairman Chief Joel Madaki convened an emergency session of the State Executive Committee(SEC) where it was decided that it would not recommend any aspirant for a waiver – in line with Section 8(a and b) of the PDP Constitutiom.

    Although the SEC  acknowledged Ribadu’s letter to join PDP, it insisted on substantial compliance with the PDP Constitution.

    It alleged that it had it on records that someone collected a membership card for Ribadu, contrary to the laid down regulations of the party.

    A source in Adamawa PDP said: “We got a verbal message from the National Secretariat of PDP to make  a formal request for a waiver for Ribadu but we said we cannot recommend. We can only submit list of members seeking waiver.

    “We have written the National Secretariat of PDP to make its request formal instead of verbal in order to put the precedent that they are trying to lay in a good perspective for posterity.

    “There are conditions for waiver which Ribadu is yet to meet. If we are truly a democratic party, we must abide by the party’s constitution. It appears some forces in the Presidency have decided to override due process. Even at that, there must be some elements of justice.

    “We have also maintained that the case for a waiver cannot be limited to Ribadu alone, if we want to be fair to all. The same gesture ought to be extended to Marwa and Gundiri in order to be fair and just to all.”

    Ribadu has written a letter of waiver to the PDP National Chairman.

    In an August 16 letter, Ribadu said his application would enable him to contest for elective office.

    The letter reads: “I wish to humbly write to apply for a clearance/ waiver to enable me aspire  for position on the platform of this great party.

    “As a fresher in the party, I have duly obtained my membership, paid required dues. I hereby tender photocopies, including my voter’s card for your necessary action.”

    In a separate letter of August 1, Ribadu applied to join the PDP.

    The letter reads:” I wish to humbly apply for membership of this great party- Peoples Democratic Party.  I am  from Bako Ward and a registered voter in this Ward.

    “I shall adhere to the party’s constitution, promptly pay my fees and actively participate in party activities. I shall also take all necessary steps to propagate and execute the aims and objectives of the great party, PDP.  I hope my application will be accepted.”

    He was subsequently given registration number 1933795.

    Already, members of the NWC are divided over the waiver requested.

    A source said: “So far, the National Chairman of PDP has not tabled any request before the NWC for waiver for Ribadu or any aspirant in Adamawa State. He has also not informed any member of the committee.

    “Ideally, we ought to grant Ribadu a waiver before he can obtain the party’s governorship nomination form.

    “Therefore, the issue of waiver is still a one-man business which is known to only Mu’azu.”

    Responding to a question, the source added: “Maybe Muazu may bring his proposal for this waiver on Monday to the NWC.

    “We will consider any request on merit. We are determined to reclaim Adamawa State; we will not fritter away this opportunity at all.

    “I hope we will not be repeating  the same mistake in Osun State where the party’s governorship candidate was already pre-determined.

    “Some of us in the NWC are worried because this waiver syndrome may becloud our commitment to free and fair primaries for the 2015 polls.”

    As at press time, it was learnt that there had been pressure on the presidency by some influential Nigerians and businessmen to concede the ticket to Ribadu.

    Another source added: “The party has a major challenge at hand on this waiver palaver.”

    Speaking with our correspondent at about 9pm yesterday, the State PDP Secretary, Mr. A.T. Shehu said: “We got a directive from the National Secretariat to send a list of aspirants who have applied for waiver. We have forwarded the name of three of the aspirants to the National Secretariat. They are Ribadu, Marwa, and Gundiri.

    “Section 8 subsection (a and b) of the PDP Constitution as amended does not empower a state chapter to grant waiver, it is the prerogative of the National Secretariat. There is even no provision for us to recommend or reject request for waiver.

    On the membership of Ribadu, he added: “In fact, the PDP door is open to all because politics is a game of number. But PDP is governed by law and  constitution which anyone coming in must abide by.”

    Speaking with Premium Times in a telephone interview yesterday, APC National Chairman Chief John Odigie-Oyegun, said he was not disappointed by Mr. Ribadu’s action, but that it merely confirmed the level to which the Nigerian society had degenerated.

    “It makes me sad because it is a very terrible thing. It is a confirmation of the level to which our society has degenerated.

    “For a man of that calibre to fall into that trap because of governorship position is disappointing. There is no problem; we wish him luck.”

    Asked why it was disappointing, the APC national chairman said: “Don’t you see what this represents – that a man of his calibre will fall for the temptation?

    “I hope you understand the point I am making. I am not sad because of the APC, but because it reflects on the condition of the Nigerian elite and the kind of things they fall for.

    “For the APC, there is no problem. People go, people come, but for this nation, it is a very sad commentary. It makes you unhappy.”

    On whether the APC leadership made any effort to dissuade Ribadu from leaving the party, Oyegun merely said, “People spoke with him,” adding “I don’t want to say more than that.” He however said, “The time has come when we should have politicians of principle. We cannot continue like this.

    “The society is sick. We shouldn’t encourage things like this. It indicates democracy is lacking in that party. “For a man of his calibre to say the things he has said on record and still did this, is disappointing. If he had done this six months ago, that would have been understandable. But just because of nomination, you fell for it, even if it is the main election. (Buba) Marwa is there; the Speaker is there.

    “This is rock bottom. Haba wetin! The disconnection is too direct.”

    The APC Adamawa chapter said Ribadu’s defection would not affect the fortunes of the party.

    The state secretary of the party, Alhaji Abdullahi Bakari, said: “The APC in Adamawa is healthy and vibrant; what we are working on now is to have a formidable candidate for the Oct. 11 by-election to recover our mandate.”