Thursday 7 May 2015

Adesina refutes allegation on Duty Waivers to Rice Importers!




HMA Adesina holding a bag of Nigerian Rice
 Reading the allegation of fraud in rice import and linking it to the Honourable Minister of Agriculture, Dr. Adesina Akinwumi, I did not blink my eye because I would not imagined the Honourable Minister of Agriculture, Dr. Adesina Akinwumi being in charge of collection of duties or levies on food imports, specifically Rice. The Nigerian House of Representatives was in the media recently claiming that the Minister has no power to issue duty waivers to rice importers. The House further stated that the Minister did allocate rice import license to some rice millers without due process. The house lamented the bureaucracy in government procedure and the insincerity of the importers; both of which could undermine the good government policy on rice


Rice Pyramid in Kano
The lawmakers therefore called for a complete review of the 2014-2017 fiscal policy on rice, in order to achieve the intended goal of self sufficiency in rice production. I regarded the news as dead on arrival and therefore discountenanced it; my position was based on the following factors:


1.      Dr. A. Adesina is the Minister of agriculture of Nigeria and not of Thailand;
2.      The Minister is an apostle of consumption of Nigerian Food;
3.      Adesina has the greatest passion for Nigerian agriculture and he has been pursuing the goal of self sufficiency in rice production since his first day in office;
4.      A lot of hard work had gone into local rice industry development which has achieved great impact in terms of improved local production capacity & productivity; reduction in rice import bill; increased local and foreign investment in rice production and processing;
5.      A good number of locally produced, processed and branded rice are now in Nigerian markets.
Nigerian Rice Brands

6. Adesina that i know, is a man of impeccable character and has been one of the most transparent and honest public officer that i have ever come across. He is a man of contentment and who has never demonstrated any corruptive tendency. It will therefore be very difficult to find him in such messy and fraudulent practice.
Therefore, in response to the allegation, Adesina came out tell the story to the Lawmakers to enable the public understand the true position of things and the role of each category of stakeholders.
The Minister told the lawmakers that the allegation is purely the handwork of the rice importers who refused to be team players with the government’s policy on local rice industry development. He explained that the policy was intended to encourage local rice production and reduce the volume of import. Hence, certain limited quotas were issued to importers to bridge the supply gap of 1.5 million metric tonnes while the penalty for exceeding the quota was pegged at 70% duty. But to his surprise, he said, some of the importers brought in excess of the approved quotas, between 100,000-300,000 metric tonnes and more intriguing was the fact that they were able to clear the rice without paying the levy. According to Dr.  Adesina, among the duties of the Nigerian Custom Service is collection of duties and levies and he could not understand why the importers were able to get the product out without paying duty/levy.
In his testimony before the lawmakers, a rice processor and the former Attorney General of the Federation, Mr. Andoaka confirmed the fraudulent activities of the rice importers which he said could kill the good policy of government. He told the ad hoc committee that the strategy of the importers is to bring in excess rice and dump into the Nigerian market, thereby crashing the price, far below that of the local rice and eventually kill the policy and the local industries.
In conclusion, the chairman of the ad hoc committee advised that the Nigerian custom Service must be alive to its responsibility and not bow to pressure from any quarter. That the duty of the organ of government must be carried out as stated in the law which establishes it. 

My position justified!


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