Dr. Akinwumi Adesina, Was Summoned For Failing To Appear In Respect of an Ongoing Investigation

The House of Representatives on Monday summoned the Minister of Agriculture, Dr. Akinwumi Adesina, for failing to appear in respect of an ongoing investigation into an alleged rice import duty evasion by some importers in the country.

Some of the importers allegedly exceeded their import quotas, but reportedly did not pay duties of over N3.5bn under a Federal Government import policy targeted at encouraging local production of rice.

The chairman of the ad hoc committee investigating the alleged “fraud,” Mr. Leo Ogor, expressed surprise that the minister shunned the hearing in spite of being duly invited.

He said, “This hearing was sequel to a resolution of the House mandating the ad hoc committee to investigate alleged fraud, abuses, evasion of import duties by rice importers.

“The aim is to uncover fraud and expose the endemic corruption in the importation of rice with a view to stemming the tide and boost employment generation as well as strengthen the nation’s depleting foreign reserve.

“The minister has no reason not to be here because the Ministry (of Agriculture) was duly served the invitation.

“I see no reason why people would be invited to a hearing that is for the benefit of the people and they will not turn up.

“You are a servant of the people just like we all are. What we are doing here is for the benefit of our nation’s economy. Before the end of the hearing, we are hoping to see people from the ministry come in, otherwise we may be forced to make some very strong pronouncements.”

The committee said complaints reaching it indicated that the minister facilitated the non-payment of the duties for the affected importers.

Lawmakers raised questions on the powers of the minister to grant such duty exemptions. Ogor spoke further, “The minister does not have the powers to allocate rice import or production quota to any company and then waive duties because the corresponding revenue involved is for the entire federation, which consists of the three tiers of government.

“The minister should stop deceiving himself thinking that he acts for every tier of government.”

One of the beneficiaries, Olam Farms Limited, claimed that it was never aware of a government directive that it was expected to pay duties for exceeding its import quota.

The company’s Business Development Head, Mr. Anil Nair, added that as a major stakeholder in the sector, his firm was aware of the rules and could not have deliberately breached any.

However, he accepted that the firm would be willing to pay any duties calculated against it as outstanding.

Olams Farms is the single largest farm on the continent of Africa with the capacity to import 243, 747 tonnes of rice on 10 per cent levy and 20 per cent duty.

“If you look at all the rice value chain, we have made up to date payment of duties and levies as applicable for which we made presentation previously. If we are asked to pay for the excess in importation, we will oblige and pay without any hesitation,” he told the committee.

On its part, the Nigerian Customs Service invariably confirmed the duty evasion when it informed the committee that the affected importers were asked to pay up after the import policy was reviewed by government.

The NCS’s team to the hearing was led by Mr. Adeoye Ajade.

It stated in a paper to the committee that “Olams’ import was over 245,000 metric tonnes with excess quota amounting to over N3.5bn, which was the duty liability arising from that importation.