Tuesday, September 27, 2022
HomeBusinessBUA Shortchanges FG Billions In Sugar Imports

BUA Shortchanges FG Billions In Sugar Imports

In 2020 BUA got a 360,000mt presidential quota allocation, out of which it utilized 313,700mt and has now applied for 600,000mt import quota for 2021, without a complementary investment in backward integration, which is a pre-condition for enjoying an increased import quota under the concessionary tariff.

At the end of the First Phase of the NSMP (2013-2016), BUA reportedly raked in N66.5billion profit from accrued tariff concessions and ploughed back only N9.3billion out of that into the BIP, a far cry from other investors who channelled a minimum of 50% back into the BIP.

A 2015 dated letter below from the Nigerian Sugar Council shows that BUA was slammed a suspension from enjoying the privileges of tariff concessions for failing to follow the examples of productive backward integration programs under the Nigeria Sugar Master Plan. Where other stakeholders were in re-investing profits from the tariff concessions into local sugar factories, BUA sugar rather was investing in the building of a new import-driven refinery in Port-Harcourt in flagrant disregard of the suspension of further sugar refinery development in the country.

What the country clearly needed at that time according to the Sugar Council was an investment in sugarcane to sugar production to move the country out of its dependence on sugar imports, save foreign exchange and create jobs for Nigerians.

Cumulative Satellite monitoring data obtained from an anonymous source in the Sugar Council shows gross discrepancies between the self-reported performance figures (amount of land cultivated for sugar cane) by BUA’s Lafiagi Sugar Mill with what is actually on the ground verified by the satellite imagery.

BUA claims to have developed 6,500ha of land by May 2020 with 2,220 ha cultivated with sugar cane, however satellite images show that since 2016 only 473ha were developed and cultivated, despite enjoying billions in concessionary rights. A sugar factory without sugar cane represents a national scam for the Federal Government to investigate. This is probably what BUA is trying to coverup in the media

In another letter BUA was also denied an additional quota for raw sugar imports to service the new Port-Harcourt refinery by the NSDC, citing the need to protect the policy that was put in place to halt import dependency while stimulating investments. With the Port Harcourt Refinery, BUA Group is trying to scam the Federal Government out of the 80% duty it is required to pay when importing refined sugar into Nigeria.

The council also chided BUA for failing to demonstrate the level of commitment expected of him to justify the incentive being enjoyed from the federal government.

How the suspension after 2015 was lifted is still shrouded in mystery, as there has been no demonstrable commitment from BUA to drive the BIP, aside from projections and future dates of production, while it currently continues to enjoy tariff concessions on imports and has requested a quota increase from 313,700mt in 2020 to 600,000mt in 2021.

This is a smoking gun for the Federal Government to show that it is carrying out its regulatory oversight function without fear or favour.

EXPOSED: How BUA Shortchanges FG Billions In Sugar Imports





LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

%d bloggers like this: