Senate Commends Customs on N 900 Billion Generated in 2011

The Federal Government lost N 37 billion in revenue to import waivers granted under the Export Expansion Grant scheme (EEG). The scheme is meant to allow Nigerian manufacturers who export their finished goods, procure/import raw materials required for the manufacturing of the goods. The importation of the raw materials is thus supposed to be duty-free as an economic incentive to the manufacturers.

However unscrupulous businessmen simply obtain the import waivers and sell them to importers such as car dealers not involved in any manufacturing activity.

The revelation came when the Deputy Comptroller General in charge of Human Resources, Garuba Makarfi, appeared before the Senate Committee on Finance on Thursday.

According to Makarfi, “We lost seven per cent of our collection to the Export Expansion Grant, which is non-negotiable. This amounted to about N37.2bn. The grant was given to export-oriented companies and local manufacturers to export raw materials; but instead, these local manufacturers sold their certificates to dealers, who then used them to import cars into the country.”

Chairman of the Senate Committee Bassey Out stated the unwholesomeness of the previous regime, “We frown seriously on waivers. We want waivers to go to areas that are extremely necessary.”

Makarfi said according to directives from the Presidency, no such waivers were being issued this year.

The Senate committee also commended the Customs Service for the N 900 billion it generated in 2011 and promised to boost their support in order to assist them in growing their 2012 revenue generation target of N 1 trillion.

Otu said, “We commend you for all the good works and to assure you that the Senate will address all structural and legal frameworks to make the service more efficient.

“We support the reorganization of the service, we want you to tackle irregular e-payments and reduce leakages in your payment systems.”