OrderPaperToday – The House of Representatives has resolved to setup an ad hoc committee to investigate sugar concessionary tariff granted by the former President Goodluck Jonathan’s administration.

The yet to be formed committee is empowered to conduct investigation into the low concessionary tariff given to companies by the Federal Ministry of Trade and Investment from 2010-2013 as contained in the backward integration policy of the government.

The resolution followed a motion raised by Johnson Agbonayinma (PDP, Edo).

While leading the debate, Agbonayinma noted that in 2013, the Federal government approved low concessionary tariff of 5% duty and 5% levy to companies for importation of raw sugar as against 5% and 70% levy contained in the National Sugar Policy.

He stated further that the National Sugar Development Council (NSDC) had made staggering revelation that several companies had flouted the terms and conditions for obtaining the three years concessionary.

He disclosed that the rationale for high tariff for imported sugar was to discourage importation and encourage local production of sugar, but however added that the concession became imperative to check price hike as the nation has not achieved self-sufficiency in sugar production. 

According to Agbonayinma, three companies where given the concession by the federal government under the Backward Integration Program (BIP) with the condition of bringing the reinvestment of the concession into their farms so that sugar would be produce locally.

He pointed to a comment credited to Dr. Abdulateef Busari in 2015 that most companies granted the three years low tariff concession has flouted the conditions as a strong reason that all is not well with the BIP.

  • The lawmaker revealed further that farmers who were granted the concession have nothing to show for the hundreds of billions granted to the by the government.

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