Business
How Nigeria lost N1.4tr to waivers – Okonjo-Iwela
… Customs contradict Okonjo-Iweala
ABUJA – Nigeria lost N1.4 trillion through import duty waivers and concessions given in the last three years, according to documents from the Nigerian Customs Service, contradicting claims by the Finance Minister that N170.7 billion was lost in the period.
Mrs. Okonjo-Iwela had said in her response to the 50 questions by the House of Representatives that a total of N170.7 billion was conceeded through import duty waivers and exemptions in 2011-2013.
She said the amounts were N55.965 billion in 2011, N55.345 billion in 2012 and N59.4 billion in 2013.
But documents from the Customs, obtained by Daily Trust on Friday, reveal that a total of N1.435 trillion was lost through import duty waivers and concessions since 2011.
In 2011, about N480 billion was lost, through waiving N389 billion under the fuel, lubricants and similar products category for 149 beneficiaries, and N91 billion through other concessions to 290 companies.
The same amount of N480 billion was lost in 2012, with N288 billion going to companies trading in oil and similar products and the remaining N191 billion being lost through other concessions.
Another N474 billion was lost in 2013. The breakdown of that shows that N359 billion went to 80 oil firms while N114 billion was lost through concessions to another 287 companies.
The Customs documents indicate that about 65 percent of beneficiaries received the waiver/concessions for goods not approved by the government, which ordinarily should be limited to raw materials, machinery and spare parts.
The inclusion by the Finance Ministry of “other goods” in the categories eligible for concessions, according to the Customs, enabled finished goods that add no economic value to the country to be imported. These goods include fish, bullet-proof vehicles, kola nut, palm oil and others.
A spokesman for the Finance Ministry did not respond to questions emailed by Daily Trust yesterday, but he had said previously that, under the existing policy, import concessions are given as incentives to critical sectors for the greater good.
The Customs records show that the concessions in 2011-2013 were granted mostly to fuel dealers, with Conoil being the biggest beneficiary among them in 2013, with N53 billion.
Oando was next with N22 billion, followed by NIPCO Plc (N19 billion), Sahara Energy (N14 billion) and Folawiyo Energy (N12billion).
In 2011, the oil firm that benefited most was still Oando with N83 billion, followed by Capital Oil and Gas (N47 billion), Integrated Oil and Gas (N20 billion), Folawiyo Energy (N18 billion) and Sahara Energy (N14 billion).
The documents show that in 2012, the Nigerian National Petroleum Corporation (NNPC) was the biggest beneficiary, getting N80 billion in concessions, and Sopon Nigeria Ltd was the highest non-oil beneficiary in 2011, netting about N33 billion.
Coscharis Motors, which supplied Aviation Minister Stella Oduah’s controversial bulletproof cars and supplied 200 cars to the African First Ladies summit in 2012, received waivers of N400 million in 2011 and N698 million in 2013.
Other beneficiaries of import tax concessions include companies in the Dangote Group, the African First Ladies Peace Mission (AFLPM), Inspector General of Police, Chief of Army Staff, Central Bank of Nigeria, Bayelsa State government, Minister of Police Affairs, Nigerian Police Force, Sokoto State Government, Akwa Ibom State Government and the Watchtower Society.
N/Assembly to check abuses
When contacted on Monday, chairman of the Senate Committee on Finance, Senator Ahmed Mohammed Makarfi (PDP, Kaduna), said they were aware that waivers that do not have any significant benefit to the ordinary man were being granted.
“We are aware of waivers based on returns made to our committee sometime last year. About 60 percent of it went to a single businessman and his business empire…. I don’t believe that the ordinary man derived significant benefit from (such waivers),” he said.
Makarfi said “there is also a bill that if promptly considered can be expanded to curtail such waivers. The way to deal with this issue is through legislation and it’s our collective responsibility to do so, not continuing investigations and investigations.”
He said documents from Customs show that in 2013 they had collection shortfall of N243.69 billion due many factors including waivers, concessions, duty exemptions and other policies.
Daily Trust sought to get the Finance Ministry’s reaction to the revelation in the Customs documents yesterday, but Mrs Okonjo-Iweala spokesman Paul Nwabuikwu did not respond to emailed questions.
However, Nwabuikwu had issued a statement on Friday in response to a story done by Sahara Reporters which said the minister understated the amounts lost to the import waivers in 2011-2013.
The statement said “the waivers and exemptions policy is a direct government intervention whose objective is to provide incentives to improve industrial competiveness and support job creation in the economy.
“This policy, also implemented by other emerging economies such as South Korea and Malaysia, was misapplied in the past through implementation in a manner that created an unlevel playing field and gave unfair advantage to some individuals.
“The policy was revised and strengthened starting 2012 and is now largely applied on a sectoral basis.
“Saharareporters arrived at the conclusion that the country has lost $9 billion because it considers every waiver granted by government to critical sectors such as manufacturing, agriculture, power, gas etc as fraudulent and as a loss to the nation.
“This implies that Saharareporters doesn’t understand government policy and the importance of giving incentives to industries. We do not share that view and there is no question of loss to the country when it is government policy. The policy choice is between customs revenue and incentive revenues for industries. The government chose the latter because we believe the country stands to gain more from the incentives.”
– DAILY TRUST
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.
A safety alert notification by the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria issued on October 31, 2024, regarding NIVEA BLACK & WHITE Invisible Roll-on deodorant (50 ml) batch number 93529610, in relation to the general European Union (EU) Rapid Alert System for Dangerous Non-Food Products (RAPEX), has come to our attention.
The batch is said to contain 2-(4-tert-Butylbenzyl propionaldehyde (BMHCA).
In a statement on Saturday, in Lagos, Beiersdorf, the owner of NIVEA brand, assured that the “the Batch No. 93529610 in question has not been marketed in Nigeria and thus never recalled”.
According to the statement, Beiersdorf was well informed that “Based on current European legislation, the use of ingredient 2-(4-tert-Butylbenzyl propionaldehyde (LilialTM) in cosmetic products has been banned from the European markets as of March 1, 2022.”
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It acknowledged that “The batch in question, in fact, expired in January 2022 and was hence at the time fully compliant with the then valid European cosmetic regulation.
“As a responsible corporate citizen, Beiersdorf is working collaboratively with NAFDAC to safeguard the interest of the Nigerian consumers by ensuring that our locally manufactured product meets the global quality standards.”
It maintained that “The safety of our consumers remains our highest priority, consistent with our ethical philosophy as a business.”
In pursuit of this commitment, Beiersdorf’s entire NIVEA product portfolio formulations have been reformulated to be Lilial-free formulas in full compliance with the EU Regulation on cosmetic products well ahead of its Lilial ban coming into effect as far back as March 1, 2022. For instance, the formulation of NIVEA BLACK & WHITE Invisible Roll-on deodorant has been Lilial-free since at least 2020 across the globe, including Nigeria.
“Our trade partners were informed ahead of time and reminded of their responsibility to remove the outdated Lilial-containing products within the legal timeframe to fulfill their obligations with the European Cosmetic Product Regulation,” it added.
The Shell companies in Nigeria teamed up with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other stakeholders to build Information Communication Technology (ICT) centres and a digital library in Nigerian universities in 2024.
Biztellers reports that it initiative is part of their continuing support for education.
Some of the corporate bodies that executed the projects include the Shell Nigeria Exploration Production Company Limited (SNEPCo) and NNPC Ltd, and the Nigerian Content Monitoring and Development Board (NCDMB).
The benefiting institutions were, the Niger Delta University, Amassoma, Bayelsa State, which got a digital library in April, the Sa’adu Zungur University (formerly Bauchi State University), Gadau in Bauchi State, where an ICT Centre was commissioned in July, by The Shell Petroleum Development Company of Nigeria Ltd (SPDC) as part of the Joint Venture with NNPC, TotalEnergies and NAOC.
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In what would sound like singing-off on the educational intervention initiative for 2024, the Federal University of Technology, Owerri (FUTO), overflew with joy at the unveil of a world-class engineering design studios and ICT hub, courtesy of the SPDC, NNPC Ltd and other Joint Venture partners collaborated with NCDMB.
Reflecting on the three facilities, Country Chair, Shell Companies in Nigeria, and Managing Director, SPDC, Osagie Okunbor, said, “This is Shell working to power lives in Nigeria. The projects have changed the academic and physical landscapes in the three universities and linked the students and lecturers to the global learning arena.”
The facilities at FUTO include two state-of-the-art engineering design studios and a fully furnished 100-seater ICT lecture hall, equipped with computers and smartboards with dedicated power and water supplies. FUTO was selected for the project as part of the “institutional strengthening” in the catchment area of SPDC’s Assa North Ohaji South Gas Development Project. They were launched at a colourful ceremony attended by representatives of the Imo State Government and principal officers of the university.
Imo State Governor, Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Dr. Chimezie Amadi, said, “We deeply appreciate the efforts of our partners in NNPC, SPDC, Total Energies, and NAOC JV, who have invested in the future of Imo State by supporting this critical project. Your commitment to human capacity building aligns perfectly with our goals, and together, we will continue to drive innovation, skills development, and sustainable economic growth for our people.”
Okunbor’s address at the commissioning was read by General Manager, External Relations, Igo Weli, in which he expressed happiness “that the collaboration of SPDC, Joint venture partners, NCDMB, and FUTO has resulted in this successful social investment project that demonstrates our commitment to improving access to quality education for every Nigerian.”
On his part, the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, called on Nigerian institutions to domesticate the advancements in AI and other technologies.
“Our AI must understand Igbo, Hausa, Efik, Yoruba, and other local languages,” he said, speaking through Dr. Ama Ikuru, the Director in charge of Capacity Building.
“We must leapfrog the innovations of other nations and become a net exporter of advanced technology to achieve the lofty ideals of Nigerian content development,” he added.
The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti, said in his address which was read by the Senior Advisor Stakeholders Relations, Halimat Wilson, “Innovation thrives in an environment where ideas can be freely exchanged and developed. The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.
Welcoming guests earlier, FUTO Vice Chancellor, Prof Nnenna Oti, thanked the sponsors of the project “for a landmark donation” to the university.
The Shell Companies in Nigeria have been education since the 1950s through scholarships and other initiatives. These efforts have resulted in the award of thousands of secondary, undergraduate and postgraduate scholarship awards, provision of educational infrastructure and establishment of sabbatical and internship programmes as well as centres of excellence in several universities.
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