Fred Itua, Abuja
Senate, yesterday, appealed to the Executive to revert to 35 per cent import duty on the importation of soap noodles to save the industry in particular and Nigeria economy in general.
Senate’s position followed the adoption of a motion tagged: “Urgent need to review the import duty of soap noodles.”
It was sponsored by Barau Jibrin.
Senate said increase in import duty of soap noodles made it unprofitable for manufacturers to import them.
The chamber said the increment made manufacturers to resort to making huge investment in setting up manufacturing lines to produce soap noodles in Nigeria to the tune of about N420 billion, while creating 250, 000 jobs in the country.
Senate said recently, the Federal Government made a downward review of the import duty from 35 per cent to 10 per cent.
The Red Chamber argued that the downward review will lead to massive importation of soap noodles into the country, thereby having negative impact on the national economy.
In his contribution, Senate Chief Whip, Orji Uzor Kalu, revealed that each year, about $900 million is spent in importing palm oil into the country.
He also revealed that some importers were bringing groundnuts into the country, which he said should be discouraged in the interest of local farmers.
He said: “I think this motion should be bipartisan. From 2017 to date, our production capacity is increasing. We need to go back to the Ministry of Finance and Customs to know why the import duty was dropped.
“The motion should be kept at bay. We need to return to the Ministry and know what they have done. Many industries are importing groundnuts. Industries can’t operate because of so many things happening.
“Nigerians import about $900 million worth of palm oil every year. Some bureaucrats make things difficult by bringing some of these things into the country.
“I support this motion, but with some amendments to it. We need to go back and ask the right questions.”
Senate President, Ahmad Lawan, who presided, said when constituted, the standing committee on Trade and Investment, will work out a modality to ensure that industries create jobs for the youth.
“As a nation, we can’t but protect our industries. I believe that fiscal and monetary policies must favour our industries. When constituted, the committee on Trade and Investment will work a way to ensure that industries create jobs for our youth.”