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SENATE PASSES RESOLUTION ON ABUSE OF WAIVERS FOR RICE IMPORTATION

SENATE PASSES RESOLUTION ON ABUSE OF WAIVERS FOR RICE IMPORTATION

The Senate on Thursday, July 30, 2015 deliberated and passed a Motion on the indiscriminate use and abuse of waivers for rice importation, sponsored by Sen. Adebayo Rafiu Ibrahim (Kwara South). 
Sen. Ibrahim, who led the debate on the Motion stated that the Federal Government has a policy to encourage agriculture as a deliberate policy to diversify the economy, but the policy has significantly been eroded by the indiscriminate abusive grant of waivers, concessions and grants especially on rice importation. He observed that the flagrant abuse of the waiver scheme has severely crumbled the Federal Government’s Rice Production Policy by importing huge quantity of the commodity in excess of the approved quota.
The law-maker added that the Central Bank of Nigeria (CBN) has revealed to the Senate how the rice importers have overshot their quota and now owe the Federal Government duties running into billions of Naira. He disclosed that the Nigeria Customs Service mandated to enforce compliance in the collection of duties and other revenues has failed to enforce compliance. Consequently, the Government has recorded an annual losses of N71 billion on duty waiver, especially to importers of rice, palm oil, energy equipment, steel and vegetable oil. He cited that in 2011, Government gave import duty waiver to ten rice and palm oil importing companies amounting to N150 billion.
Sen. Ibrahim averred that to lose such vast amount of revenue at a time when Nigeria’s main source of revenue’s (Oil) price has plunged thereby recording low impact on the fiscal stability of the country is reckless.
Other distinguished Senators that lent their voices in support of the motion were Senators Philip Tanimu Aduda, Enyinnaya Abaribe, Dino Melaye, Ibrahim Gobir, Donald Shaddrack, Hope Uzodinma, Mao Ohuabunwa, Abdullahi Adamu, Chukwuka Utazie, Isa Muhammed, Aliyu Wakil, Yahaya A. Abdullahi, Joshua Lidani, Albert Abasi, Olaka Nwogu and Muhammed Shittu.
Accordingly, two out of four prayers of the Motion passed as resolution include:
1) To urge the Federal Government to stop all waivers on rice and the issuance of waivers on other items for now and mandate the Central Bank of Nigeria (CBN) Governor as well as the Comptroller General of Nigeria Customs Service to ensure that all duty due to the Government is recovered.
2) Set up an Ad-hoc Committee of the Senate to look into all waivers, concessions, grants and carry out a holistic review to determine the full recovery of all Government revenue related to this policy. 

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