African countries lobbying companies out of Nigeria ― Minister

The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, on Thursday, raised the alarm that several African countries were lobbying companies registered and operating in Nigeria to leave Nigeria and relocate to such countries.

The minister raised the alarm when he appeared along with the agencies under his ministry before the House of Representatives Committee on Public Accounts over queries from the office of the Auditor General of the Federation

He however disclosed that the Federal government was doing everything possible to ensure that such companies don’t leave the country under any guise

The minister explained that many of the countries involved, including Ghana had increased their capital allowances to companies and had already taken away lots of investment from the country, saying that what was keeping some companies in the country today was its population.

He said the government was looking for ways of increasing the level of new investment in the country and sustaining existing ones, saying “our duty is to support investment growth in Nigeria. It is public knowledge that getting these investments is increasingly becoming difficult today.”

Speaking while briefing, the minister and his team on the purpose of the invitation by the Committee, the Chairman of the House Committee on Public Account, Rep. Busayo Oluwole Oke disclosed that several companies operating in the country were in the habit of not paying the required revenue to government leading to lack of revenue for the operation of the government services.

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According to him, “Nigeria is bleeding. We are borrowing daily to finance our budget and the Minister of Finance had said that the reason we are borrowing is that we are not collecting the revenue we are supposed to collect.

“The Ministry of Industry, Trade and Investment had issued some instruments which earned companies tax breaks and tax holidays. But this scheme had been abused by the companies.

“When some of these companies appeared before this committee, we noticed from their presentation elements of tax invasion. For example, China Habour got a waiver of N5 billion to import nails and wire nets. In my village, we have a company that manufactures nails, but the cost of manufacturing nails locally is higher than those imported. So, how do we encourage local production?

“The same company invaded some of the schemes of the government and they are seeking to have Pioneer status. We also have a company that has been existing in Nigeria since 1979 and has never paid one Kobo to the government. ALSCON has been in operation and has not paid a single Kobo to the government coffer.

“There is a company that put up a show and usurp the function of NEPZA who are supposed to remit its operating surplus. But its licensees have undermined the agency.

“Millions of dollars that are supposed to go into NEPZA’s coffer are going into private pockets. That is why we are trying to find out if there is a need to review existing laws because the Parliament will not allow the country to continue to bleed.

“MTN gave us a certificate of acceptance worth N2.6 trillion and claimed to be the highest taxpayer in the country. We are asking them to provide us evidence of how they got those certificates. That is where we are right now.”

Speaking on the operations of the Oil and Gas Free Zone Authority, Oke said “some licensees claimed to have made payment to you which we cannot see. For example, AGIP claimed to have paid millions of dollars to you. I checked the records of your submission and cannot find even one million dollars traceable to a single company.

“They also filed for capital allowance with FIRS and FIRS has given effect to that without the certificate of acceptance issued by the Ministry of Industry. We have asked for evidence of exception and there is none. We have also asked for a list of the assets they imported that qualified and inspected which the FIRS acted on.”