Home Business Nigeria may lose $561.2m to 50% PMS import rebate in 2018

Nigeria may lose $561.2m to 50% PMS import rebate in 2018



The Managing Director, Nigerian Ports Authority (NPA), Hadiza Usman, said Nigeria might lose about $561.2 million and N34.2m if the approved 50 per cent rebate on petrol importation is sustained.

Usman disclosed this on Thursday during the 2017 Budget Performance and 2018 Budget Defence meeting of NPA management with House of Representatives Committee on Ports and Harbours in Abuja.

She advised that such waiver should be reviewed because it had not impacted on the official pump price of the product pegged at N145 per litre.

She said that NPA lost $234.4m and N3.2bn as a result of 50 per cent reduction of charges on petrol vessels from 2009 to 2015.

The managing director added that in 2018, $561.2m and N334.2m may be lost for the reason.

”If you have done this before, why do you want to re-introduce it. And, if you re-introduced it, let Nigerians know that the price of fuel will be reduced because government has reduced NPA charges by 50 per cent.

”When you look at PPPRA template, you will see NPA charges were reduced by half,” she said.

While calling for immediate review of the policy, Usman stressed the need to ascertain the benefits accruable to ordinary Nigerians in terms of reduction in the price of petroleum products.

“The Nigerian Ports Authority has been given directive to provide 50 per cent rebate on all PMS vessels that are coming into Nigeria.

”So, we are concerned about that 50 per cent rebate because it was instituted and suspended in June, 2015 and within that period (2011-2015), there was no reduction in the price per litre of PMS.

“So, who enjoyed that rebate?

“Now that it is being re-introduced, we need to see that recognition within the PPPRA template, within the price for a litre of fuel.

“We cannot keep on giving a rebate without it being reflected in price of petrol; we are concerned about that,” she said.

Earlier, Chairman of the committee, Patrick Asadu, urged all federal agencies not to ground the government’s activities because of the 2019 general elections.

He also tasked them on the need to be accountable by ensuring value for money in the discharge of their statutory functions.




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