The Senate Committee on Customs, Excise and Tariffs yesterday urged the federal government to blacklist companies and banks that were found culpable of engaging in foreign exchange abuses.
Chairman of the Committee, Senator Hope Uzodinma made this known while fielding questions from journalists in Abuja. He said that as part of the committee’s preliminary investigation, it found out that most of the companies were found to have abused federal government’s fiscal policies. “The federal government will not only blacklist these companies but will also ensure that expatriates behind these companies are deported back to their various countries,” he said.
He decried that these fraudulent actions were some of the reasons why there was leakage in government’s revenue. “Some of these foreign companies are registered with the Corporate Affairs Commission (CAC) with the status of Nigerian companies and nothing remitted to the federal government; this is why there is scarcity of foreign exchange,” Uzodinma said.
He further explained that the essence of the fiscal policies was to subsidise production activities in Nigeria to encourage local manufacturing of products. “Suddenly, people are taking advantage of that good intention of government and have abused the policies,” he said.
He decried that most automobile companies were bringing in goods as either Semi-Knocked Down (SKD) or Completely-Knocked Down (CKD).
“The little revenue that government would have collected through Customs is lost by these practices,” he said. He explained that these policies, which were meant to facilitate trade and stimulate the economy, had become “drain pipes” due to the illegal practices.