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.
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