Lubricant producers petition Okonjo-Iweala over failure to implement new tariff

As CMC Connect organises summit
Lubricants Producers Association of Nigeria (LUPAN) has petitioned the Coordinating Minister for the Economy/Minister of Finance Dr. (Mrs.) Ngozi Okonjo-Iweala and the Comptroller General of Nigeria Customs Service (NCS), Alhaji Abdullahi Dikko Inde, over the non-implementation of the amended 196 Tariff Lines No 20 H.S Code 2710.193900.
The Executive Secretary of LUPAN, Mr. Obidike Emeka, raised the alarm at the 1st Nigerian Lubricant Summit media briefing, with the theme, “The Nigerian Lubricants Market: Opportunities and Challenges,” facilitated by CMC Connect, a firm of perception managers, held in Lagos on Monday.
But contrary to the directive, Obidike said it was with shock and disillusionment that LUPAN received information that most Customs commands are in blatant disregard of the directive from the Ministry of Finance.
The 196 Tariff Lines No 20 houses the H.S Code 2710.193900, which is base oil, a major raw material for lubricant manufacturing, whose tariff was reduced from 5 per cent from its previous rate of 10 per cent.
Obidike explained that the Minister of Finance, Mrs. Okonjo-Iweala, on January 23, 2014, released a circular for the extension of ECOWAS Common External Tariff 2008-2012 alongside the fiscal policy measures for 2014 with all relevant government agencies/parastatals and the NCS notified.
Rather, he said NCS is insisting on the payment of the previous tariff of 10 per cent and has gone further, in a bid to enforce its stance, to seal up the silos/tanks of some operators, which include Mobil Oil Nigeria Plc, pending compliance with its demands.
In view of the development, the association called on NCS to comply with the directive in the interest of the sector and the economy at large while also urging the service to urgently unseal Mobil silos and other companies affected.
Meanwhile, project consultant to the organisers, Mr. Kayode Sote, explained that the two-day summit and exhibition holding next week aims, among other things, to promote a better understanding and appreciation of the nation’s hydrocarbon reserves, potential and diverse investment opportunities therein.
He noted that the forum would also provide insight into investment profile of lube manufacturers and their commitment to sustainable job creation and contribution to the technical and economic growth of the nation, while also examining the challenges in the market.
The panelists, according to Sote, have been selected from a cream of distinguished resource persons with proven track records and relevant expertise.
“They will demonstrate and share their practical experiences with the stakeholders and participants. These facilitators are indeed a mix-grill of professionals and administrators from the private and public sectors and with experience in the relevant topic of discourse,” he said.
Earlier in his address, the Managing Director of CMC Connect, Mr. Yomi Badejo-Okusanya, disclosed that his organisation’s Public Affairs Directorate decided to collaborate with the Department of Petroleum Resources to organise the summit because it would create a platform for the major and indigenous lube manufactures, technocrats, investors, service providers, diverse consumers, statutory and regulatory agencies and other stakeholders to meet and marshal a way forward to create frontiers of growth of the lubricants market in the country.