OPS seeks fair allocation of import waivers

The Organised Private Sector has called for an equitable and impact-based allocation of government waivers for imports.

The group emphasised the need for transparency and fairness to bolster economic growth and support the manufacturing sector.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, in a recent chat with journalists, stressed the need to assess each waiver’s impact and ensure transparency and fairness in their allocation.

He stated that sector-specific waivers, rather than company-specific ones, would promote fairness and avoid granting undue advantages to particular firms.

He explained that waivers should be granted for the right reasons, with a clear understanding of their impact on the economy.

Highlighting the importance of evaluating waivers based on their specific context and potential benefits, he noted that waivers granted for manufacturing could significantly enhance production capacities and job creation.

“Those aimed at infrastructure development could stimulate economic activity and growth,” he added.

The CPPE boss advocated for a comprehensive impact assessment to measure the benefits of those waivers, ensuring that the revenue lost through waivers translates into tangible economic advantages.

“Each waiver must be assessed on its merit. The analysis should determine whether it is worth it or not. We must ensure waivers are given transparently and equitably.

“All stakeholders within a sector should have equal access to these incentives. Waivers should focus on reducing production costs and supporting sectors that can drive economic recovery,” Yusuf stated.

The PUNCH reported that the Comptroller General of Customs, Adewale Adeniyi, while appearing recently before the National Assembly, said the country lost N1.34tn in waivers and concessions that former President Muhammadu Buhari’s administration granted to investors.

A chieftain of the Association of Nigerian Licensed Customs Agents, Mr Pius Ujubonu, stated that incentivising trade through waivers was a common practice globally and necessary to stimulate economic activity, especially in challenging times.

Ujubonu emphasised the need for waivers to be distributed appropriately to those who truly need them to foster trade growth.

The chieftain of ANLCA stated that the NCS should be more transparent about the real factors affecting their revenue.

He pointed out that the reduction in cargo throughput was primarily due to the challenging business environment, unfavourable fiscal policies, and logistic inefficiencies.

According to Ujubonu, the purchasing power of the people is low, and returns on investments are very low.

He explained that people cannot buy many things, which directly impacts cargo volumes.

“Incentivisation is part of the strategies to stimulate trade. There is no reason a country cannot have incentives. Waivers are inevitable and should be given to deserving persons to encourage business stabilisation before profit can be discussed,” Ujubonu said.