The Organised Private Sector (OPS) has called for an equitable and impact-based allocation of government waivers for imports, emphasizing the need for transparency and fairness to bolster economic growth and support the manufacturing sector.
Shipping Position Daily recalls that Comptroller General of Nigeria Customs Service (NCS), Adewale Adeniyi, while appearing recently before the House of Representatives Committee on Finance had noted that the Service generated N1.34 trillion and lost N318 billion to exemptions, waivers and concessions granted to companies in the first quarter of 2024.
He pointed out that the suspension of excise policy on carbonated drinks, single use plastics, telecommunication and others in the 2024 fiscal policy measures, adversely affected revenue generation by the agency.
Speaking with our correspondent, the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE); Dr Muda Yusuf stressed the necessity of assessing each waiver’s impact and ensuring transparency and fairness in their allocation.
Dr MudaYusuf argued that sector-specific waivers, rather than company-specific ones, would promote fairness and avoid granting undue advantages to particular firms. He emphasized that waivers should be granted for the right reasons, with a clear understanding of their impact on the economy
Highlighting the importance of evaluating waivers based on their specific context and potential benefits, he noted that waivers granted for manufacturing could significantly enhance production capacities and job creation, while those aimed at infrastructure development could stimulate economic activity and growth.
Speaking further, the CPPE boss advocated for a comprehensive impact assessment to measure the benefits of these waivers, ensuring that the revenue lost through waivers translates into tangible economic advantages.
“Each waiver must be assessed on its own merit. The analysis should determine whether it is worth it or not. We must ensure waivers are given transparently and equitably. All stakeholders within a sector should have equal access to these incentives. Waivers should focus on reducing production costs and supporting sectors that can drive economic recovery,” Dr Yusuf stated.
On his part, the immediate past Vice President of the Manufacturers Association of Nigerian (MAN), Chief John Aluya raised concerns over the alleged issuance of government waivers, claiming that manufacturers have not benefited from such concessions.
Chief Aluya challenged the Nigeria Customs Service (NCS) to disclose details about the waivers, asserting that no manufacturers have received any. He expressed frustration over the current economic struggles faced by local industries, noting that many companies, including foreign entities, are diverting their investments away from Nigeria, and local industries are shutting down.
The manufacturer questioned the existence of these waivers, suggesting that if they were indeed granted, the current economic hardships and business closures would not be so prevalent. He urged the Nigeria Customs to clarify which companies have received the waivers, emphasizing that transparency is crucial.
Also speaking, a Chieftain of the Association of Nigeria Licensed Customs Agents (ANLCA), Mr. Pius Ujubonu highlighted that incentivizing trade through waivers is a common practice globally and necessary to stimulate economic activity, especially in challenging times.
Ujubonu acknowledged that while waivers are given, they need to be distributed appropriately to those who truly need them to foster trade growth. However, he sharply criticized the Nigeria Customs Service (NCS) for what he describes as their insincere explanations for revenue losses, attributing it to a decline in cargo throughput rather than the issue of government waivers.
The ANLCA Chieftain emphasized that the NCS needs to be more transparent about the real factors affecting their revenue. He pointed out that the reduction in cargo throughput is primarily due to the challenging business environment, unfavorable fiscal policies, and logistic inefficiencies.
“The purchasing power of the people is so low, and returns on investment are very low. People cannot buy many things, which directly impacts cargo volumes. Incentivisation is part of the strategies to stimulate trade. There is no reason a country cannot have incentives. Waivers are inevitable and should be given to deserving persons to encourage business stabilization before profit can be discussed,” Ujubonu said.
