Imported Rice: FG Recants, May Slash Import Duty, Levy

There are strong indications that the Federal Government may soon slash the duty and levy that were imposed on importation of rice.
The Coordinating Minister for the Economy and Minister of Finance; Dr. Ngozi Okonjo-Iweala,  told a gathering of members of the Manufacturers Association of Nigeria (MAN), in Lagos  on Monday that she and her counterpart in the Agriculture and  Rural Development Ministry, Dr Akinwumi Adesina had already commenced consultations on the issue..
The minister said at the interactive session which was organised by MAN that it had become necessary to review the 100 per cent duty and 10 per cent levy on rice because it had created significant challenges even though it had also led to a marked increase in rice output in the country and created a significant number of jobs mostly in the northern part of the country.

She confirmed that, even though “the 100 per cent duty and 10 per cent levy on rice has led to an increase in the nation’s rice output especially in the North”, it has “also created jobs but it has also caused a significant reduction in customs revenue and has been largely hijacked by smugglers and neighbouring countries”.
“So we are reviewing the rice duties policy and we are discussing with the president and the minister of agriculture,” she added.
She also noted that it became necessary for the federal government to put the Export Expansion Grant (EEG) on hold in order to enable it review the entire process and ascertain its sustainability and effectiveness.
The minister said while over N200 billion worth of Negotiable Duty Credit Certificate (NDCC) had been honoured by the federal government in the past couple of years, around N82 billion was outstanding.
“We are restructuring the entire EEG process. It had become very unsustainable so we had to reform it. While we find that it has increased export in the country, the employments it has generated and the value addition it engendered could have been better,” she said.
Okonjo-Iweala maintained that until the EEG policy is completely reviewed and sent to the Federal Executive Council (FEC) for approval, it would be kept on hold.
“The scheme has not been scrapped by any means, but we will not move on with it until we see that its impact on revenue flow is sustainable,” she stressed.
She however pointed out that if the federal government is no longer able to carry on with the EEG, it will ensure that reasonable notice is given to manufacturers before it is effectively terminated.
The finance minister expressed satisfaction over the successful implementation of the sectoral waiver policy, which ensures that levy and duty waivers are not granted to companies on individual basis, rather to manufacturing sectors across board.
She said the sectoral waiver policy had helped to reduce  the pressure piled on government by various individuals for one incentive or the other to be granted specifically to their companies.
The minister then called on the operators of the manufacturing sector to speak up in the defence of government with respect to the impact that the numerous concessions from government has brought to their businesses in terms of increase in capacity utilisation, increase in value addition and their ability to put more Nigerians to work.
“People who are not well informed are saying that these sectoral waivers and concessions are not making any difference and that it they are hinged on corruption. So, I believe  that you people who are beneficiaries, whose businesses have been improved by these interventions should speak up and explain that the waivers are helping you to create jobs and boost economic growth,” she said.
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