The Coalition against Corrupt Leaders (CACOL) has warned of the dangers of continued reckless use of import waivers to economic development, and has therefore urged President Goodluck Jonathan and Minister of Finance and Coordinating Minister of the Economy Dr. (Mrs.) Ngozi okonjo-Iweala to rein the trend in.
In a release signed by Executive Chairman Debo Adeniran, CACOL recognised the selective application of import duty waivers, all over the world, as an instrument for boosting the economy of any nation through the systematic relaxation of custom duties payable on imported materials, which in most cases, are essential for promoting and creating enabling environment for local productions and which, in turn, rubs off positively on local consumption
It observed also that in special cases of national interest too, waivers are granted to government agencies, for the importation of those items of necessity for facilitating government activities in specific sectors, as the case may be, adding that waivers in this concept therefore are presupposed to help in providing the desired soft-landing for specified industries, be it public or private. However, it expressed worries over rising indiscriminate government abuse of waivers.
“The far-reaching implication of this is that the healthier the industries are, the greater are the positive impacts on the nation’s economy and of course the potentials for job creation”, CACOL wrote in the statement.
“Worthy of note, however, is that each waiver granted automatically translates to a loss in revenue to the nation. Therefore, in exercising this prerogative, caution must be taken by those in authority, so as to ensure that the process is not abused. But it becomes rather worrisome seeing how those entrusted with these powers use them with reckless abandon.
“Recent reports on waivers in Nigeria are mind-boggling. For instance, the comptroller-general of the Nigerian Customs Service, while testifying before the Senate recently, stunned the hallowed chambers when he submitted that as at the last September, the nation had lost over N600bn to import duty waivers and concessions under various guises. This trend is not peculiar to the Jonathan administration alone, as the House of Representatives, during a parliamentary hearing, listened to the allegations that Obasanjo’s government, between 2003 and 2007, had granted waivers and concessions mostly to ‘totally undeserving firms and individuals’ to the tune of N276.94bn”.
CACOL recalled that Minister of Finance, Mrs. Ngozi Okonjo-Iweala once criticised and expressed in the loudest tone, her opposition to the habit of indiscriminate granting of waivers due to its detriment to the economic interest of the country. It expressed surprise at her sudden and newfound love for this anathema to genuine investments, industries and job creation, which are the projected benefits of the incentives.
“It is rather saddening that, according to the Customs comptroller, a market for large-scale scam has been opened through waivers and concessions, as these incentives now, not only go into wrong hands who, rather than use it for the intended purposes, convert them into other private uses and exchange them for money with moistly importers of vehicles, who do not fit into the category of employers of labour”, CACOL continued.
“Also saddening is the discovery that so many sectors that are of no relevance whatsoever to the economic machinery of the nation, are practically involved in this evil exercise. Not long ago, a news print reported how the general overseer of about the fastest-growing church in Nigeria, banking on his connection with the array of top bracket of political heavyweights who are mostly members of his church, recklessly recommends waivers running into billions of Naira for businessmen in his fold, and such recommendations are hastily acceded to by those in authority without questioning.
“Today, local manufacturers are crying in pains over the havoc this trend is wrecking on their survival. Whilst many are folding up, (many have, in fact, folded up), others are either retrenching their workers thus increasing unemployment or forced to diversify. Industries such as vegetable oil, food and beverage producers and other areas of economic preferences are crying out to the relevant authorities to check this abuses which is capable of sending them into extinction. And, coming to think of the fact that these manufacturing industries are the potential employers of labour on a large scale, the ever increasing number of unemployed employable hands at such an astronomical scale, should be a source of big worry to any responsible government”.
CACOL implored the Presidency and in particular, Minister Okonjo-Iweala to refrain from allowing herself to be used for “these unholy acts, if she truly values her reputation”. It urged her to also realise that, if indeed, she’s being manipulated or arm-twisted by some powerful but unseen hands, the fallback of posterity would only come back to haunt her alone when the time comes.
“We also urge the anti-graft agencies to commence investigations into the waivers granted since President Goodluck Jonathan got to power and anyone found to have abused his office should be prosecuted to serve as deterrent”, it added.
“Special appeal, too, goes to our lawmakers to, without further delay, provide a legislative check on these abuses for the sake of our national survival. After all, countries like India, Malaysia and Indonesia, to just mention a few, had used this instrument of waivers and concessions, to better the lot of their people, the multi-dimensional economic benefits of which we all are witnessing today.
