Nigeria private and public sector operator enjoyed a whopping N25.8 billion import duty waivers and exemptions jointly approved by President Goodluck Jonathan and the Finance Minister, Dr Ngozi Okonjo-Iweala between January and May, 2014.
Documents from the Finance Ministry show that Indorama Eleme Fertilizer and Chemicals Limited was the highest beneficiary of the waivers with N10.5 billion. A further breakdown of the figure shows that N6.96 billion was approved as waiver in favour of Indorama for importation of machinery, equipment and spare parts, while the balance of N3.54 billion for waiver on fertilizer equipment, catalysts and chemical pile.
Meanwhile, Chevron Nigeria Limited was the second highest beneficiary, with N4.87 billion waived for the importation
of machinery, equipment and pipelines; followed by Galaxy Backbone, with N2.49 billion for Information and Communications Technology equipment. Similarly, United Cement Company of Nigeria and NIPCO Plc also got waivers of N1.91 billion and N1.02 billion for the importation of machinery, equipment and spare parts.
Other major beneficiaries are the Borno State Government that got N984.79 million waiver for agricultural machineries; the Federal Capital Territory Administration/Globe Motors for 290 units of motor vehicles used at the recently held World Economic Forum; and Médecins Sans Frontières (Doctors without borders),
N568 million for medical supplies. The document also stated that the Federal Government granted N55.96 billion, N55.34 billion and N59.42 billion as import waivers in the 2011, 2012 and 2013 fiscal years respectively.
This year’s waivers were granted mainly to companies operating in the agriculture, health, oil and gas, mines and steel and power sectors.
It was buoyed by the need to improve the agriculture and mining sectors, improve medical services, increase power generation, promote family planning as well as increase the standards of education were some of the reasons for granting the waivers. In her defence, Okonjo- Iweala described the waivers as incentives used to support the private sector due to some regulatory challenges they face in the domestic business environment.
According to the Coordinating Minister for the economy, President Jonathan’s administration introduced a sectorwide waiver policy to provide specific incentives for some strategic and job-creating sectors, adding that such a move was a radical departure from the past where waivers were granted to mainly individual businesses.
She noted that the former practice resulted in rent-seeking behaviours and an uneven playing field for competitors to the detriment of the larger economy.

FG grants N25.8bn waivers in 5 months