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Maritime industry loses over N21.6bn annually to fuel subsidy – Oyewole

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The maritime industry loses over N21.6 billion annually to fuel subsidy related issues, Senior Special Adviser to the President on Maritime, Mr. Leke Oyewole, has said.

The Presidential Adviser who spoke in Lagos said that apart from the N1.3 trillion paid as subsidy annually, the Nigeria Customs Service, NCS; Nigerian Ports Authority, NPA; and Nigerian Maritime Administration and Safety Agency, NIMASA, were also supposed to be collecting duties and levies from imported petroleum products but noted that they were not getting any revenue from the importation of the product presently.

Leke pointed out that seven years ago, Customs used to collect N3 on every litre of petrol brought into the country but stressed that importers of the product complained and it was reduced to NI.50. He said they went back to complain and even the Nl.50 was taken off completely.

A ship can carry about 30,000 metric tons of the cargo which is about 30 million litres, with the Nigerian National Petroleum Corporation, NNPC, alone bringing in about 20 ships in a month.

This, he further noted was aside the number brought in by other individuals.

Leke said: “When you look at the money NPA and NIMASA are supposed to collect plus the NI.3 trillion (subsidy) then what is lost to subsidy is more because I have checked through the records and I can not see their record of payment in NPA or NIMASA.”

He explained that with the collection of N3, the NCS would be raking in N90 million on each 30 million litres of the product imported into the country and N1.8 billion from the 20 vessels of the product brought in by the NNPC monthly.

Should the N1.8 billion be multiplied by 12 months of the year, the expected lost revenue to government amounts to N21.6 billion. This is out the amounts that should have accrude to government as revenue collected from import of the product by other individuals and the amount that would have been collected by NPA and NIMASA.

According to him, “What that means is that we will be subsidizing the mother vessels that bring in products and they do not pay port charges and levies to the state government. Where are they taking the money to? This is unfair to the government.

NI.3 trillion, all that revenue is lost to subsidy plus what is supposed to go to NPA and NIMASA. You know that no economy can grow under this situation. There is no two ways about this, we most remove subsidy.”

It will be recalled that the Managing Director of the Nigerian Ports Authority had earlier said that the authority loses about $100 million annually to subsidy of petroleum products imported into the country.

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Updated 7 Years ago

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