This is one of those headlines and newspaper reports that send red flags to me. The Vanguard reports that the Federal Government’s decision to grant import waivers to importers of vegetable oil will contribute to the quick demise of a sector that is already struggling to cope with its many challenges
They interviewed Group Deputy Managing Director, of Kewalran, Mr. Victor Eburajolo who said
one of the major problems confronting the sector is “import duty waivers on products like oil and cake to compete with the already well developed palm industry in the Far East which has resulted in inability of local manufacturers to compete against such imported oils resulting in huge finished inventory stock of oil and DOC (oil for making cake) running into several billions of naira.
Whilst I promote free markets this is indeed worrisome considering the frivolous reason why some of the waivers were given. For example, they quoted one reason as follows;
His Excellency, Mr. President has granted approval for a concessionary rate of 0 per cent duty and 0 per cent VAT on importation of Soya Bean meal for poultry consumption by poultry farmers with effect from 1st March to 31st December 2013.” –
This should be of particular worry for those with investment in quoted companies in the palm and vegetable oil business.
– See more at: Vanguard