Reps query N152bn revenue shortfall on wood export

The Ad-hoc Committee investigating the massive deforestation and alleged corruption in the management of the environment and its effect on climate change, on Thursdayqueried Nigeria Customs Service over alleged N152 billion ($500 million) revenue shortfall accrued from export of woods from Nigeria to China.

The lawmakers expressed the concern during an investigative hearing chaired by Bede Eke, during the cross-examination of the documents submitted to the Committee by stakeholders on the record of wood export by the Chinese Custom and their Nigerian counterpart.

Similarly, operators under the aegis of Processed Woods and Products Association of Nigeria (PWPAN), also urged the Ad-hoc Committee to verify the utilisation of the N1.2 billion National Forest Trust Fund account, paid by its members through Federal Ministry of Environment and warehoused into the Treasury Single Account (TSA).

During the public hearing, all the stakeholders unanimously resolved that all the three tiers of government should ensure that 98 percent of the revenue realized from the N250,000 being paid by each of the operators should be reinvested into Nigeria’s afforestation programme.

Bede Eke, chairman of the Ad-hoc Committee who frowned at the spate of corruption within the industry, disclosed that over 95 percent of the companies involved in the wood exports evade taxes and have no traceable addresses in the bid to track them by Federal Inland Revenue Service (FIRS), Corporate Affairs Commission (CAC) and other regulatory agencies.

“Ninety-five percent of those companies do not pay their taxes and they are doing business with government. Are we going to revoke all the licences so that proper documentation will take place? Because we have thousands and thousands of containers exporting woods but no repatriation of those funds was paid as required by the Government. That’s why I said it’s important for these people to be here,” Eke said.

On his part, Timothy Golu, chairman, House Committee on Budget and Research who alleged that there was conspiracy between the operators and officials of the regulatory agencies, threatened that the Legislature may invoke its Constitutional powers to remove regulatory functions of any erring agency.

To this end, he urged Customs and other regulatory agencies to disclose the conspirators and identify the weak link within the chain of command.

The lawmakers also tasked relevant government agencies, especially the Nigeria Customs Service (NCS) to put necessary technology in place to improve monitoring at various ports, just as they applauded ongoing move by Federal Government to reduce regulatory agencies at the ports as part of measures aimed at improving Ease of Doing Business in the country.

The lawmaker also urged Corporate Affairs Commission and the Nigerian Export Promotion Council (NEPC) to ensure that only companies with verifiable credentials are allowed to conduct export business in the country.

In his remarks, Ademola Oyaleke, PWPAN President expressed optimism that the industry has huge potential for employment and revenue generation as well as attract foreign direct investment into the country.

He also urged the Adhoc Committee to go through the blueprint on the sustainable afforestation and revenue generation.

 

KEHINDE AKINTOLA, Abuja