An import quota of 246,000 metric tonnes has been allocated to Olam by the ministry as a major rice investor for the period spanning April 2015 to March 2016. It was also learnt that some importers of the commodity had obtained various forms of concession from the Agriculture Ministry.
But the NCS has declared that the move was a futile exercise inasmuch as the ministry has no power to grant import waiver. Adesina, in a letter he signed and dated April 13, 2015, said: “I am glad that domestic rice production is already on the increase; thereby resulting in rice import requirements of the country; hence the need for encouragement, by granting a duty waiver. “Given Olam Nigeria’s massive rice production and milling investment Nigeria, being the largest single existing investor in the sub-sector over the last two years with existing investments over $120,000,000, the ministry is willing to reduce the amount owed by 50 per cent to 54,000 metric tonnes to be applied to 2015 allocations.
“Olam’s existing rice production and processing operations and future investment plans have been assessed against the aforementioned criteria and an import quota of 246,000 metric tonnes has been allocated to Olam as a major rice investor for the period, April 2015 to March 2016.” The minister stressed that Olam now qualifies for a 10 per cent duty and 20 per cent levy waiver allocation. Based on this, Olam will only pay about N3.5 billion.
However, the Customs spokesman, Mr. Wale Adeniyi, a Deputy Comptroller, told New Telegraph that the position of the NCS in respect of duty collection has not changed. He said Customs would collect the duty in the absence of which it would sanction the importers. Adeniyi said: “We are committed to a total recovery of the duty payable on excess importation of rice.
“We have the government backing on this issue. The president (Goodluck Jonathan) has given us the mandate to recover fully the duty on excess importation on rice; and management has no reason whatsoever to shirk its responsibility in this regard. “It is revenue that is due from any excess importation and we have President Jonathan’s backing to make this recovery. So, despite their foot-dragging, they cannot escape paying it. “Some of these importers still import. They are corporate bodies. So, they have indemnities, which we can tap into.
We have our cards; and we can very much play it effectively. “Some of them still have high volumes of imports, which they have not started discharging. We may not allow them to discharge. And even the ones that have discharged; we may not allow them to leave the port until they meet their obligation.” The NCS had, twice, issued strict warnings and deadlines to rice importers to remit N20 billion or face punishments. One of the importers, who spoke on condition of anonymity to New Telegraph, explained that the burden of payment was too heavy to bear. He added that it was a preferred option to delay the payment, until the incoming government of Buhari takes over, so as to open up new negotiations. He said: “Our effort was to ensure that Nigerians don’t go hungry, but rather than this gesture being recognised and compensated, the Nigeria Customs are on our necks, asking us to pay.
“We have invested heavily. We ought to be encouraged. Even those the government granted waivers didn’t do half of what we did.” Meanwhile, a former Attorney General of the Federation and now Secretary of the rice farmers’ association, Mr. Michael K. Aondoakaa, has called on government to urgently protect the local rice industry from being thrown out of business.
Aondoakaa, at a media briefing, expressed worry that the unethical practice indulged by rice importers could circumvent government’s policy and endanger the indigenous local rice industry. According to him, a particular company has resorted to smuggling of rice and selling them at cheaper prices in a bid to frustrate the local rice manufacturers.
- New Telegraph
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