Rep urges FG to impose 10 per cent tax on imported barley concentrates

The lawmaker representing Ikenne, Sagamu and Remo North Federal Constituency in Ogun State, in the House of Representatives, Oladipupo Adebutu, has called on the Federal Government to impose a 10 per cent tax on barley concentrates, as a way of discouraging their importation into the country.

Adebutu made the call during his presentation of a motion titled ‘Urgent Need to Save Nigeria’s Agro- Industry from Imported Processed Grains’, on the floor of the House of Representatives.

He also called on the Government to re-impose the ban on the importation of malted barley, in order to save Nigeria’s sorghum processing industries from closure and loss of jobs.

He noted that in 1988, in line with its import substitution and foreign exchange policies, the Federal Government banned the importation of barley concentrates and barley malt used in brewing beer and malt drinks, and that this ban led to the rapid expansion of sorghum production and malting in Nigeria, from which a robust farming and processing value chain developed. 

Adebutu said, “with the boost in local production, Nigeria topped the list in sorghum production in the world, with 11 million tons; and with the malting and sorghum-base malt extract, created a sorghum value chain, ranging from farming, processing and storage thereby generating both on and off farm employment in the country.

“However, Nigeria’s sorghum production and value chain has been hit hard with a change in policy and the 5 per cent waiver granted to multinational brewing firms who import barley concentrates and barley malt from their parent companies.

“This has adversely affected local sorghum farmers and malting plants as well as increasing the rate of capital flight and supporting jobs in the European Union- subsidised agricultural sector to the detriment of Nigeria”.

He added, “given the unrestricted importation of malted barley and the already high rate of unemployment in Nigeria, jobs and livelihoods in the sector are being placed under threat from imminent closure of sorghum malting plants which are operating at less than 10 per cent of installed productive capacities”.

Based upon the Motion presented by Adebutu, the House of Representatives resolved that the House Committee on Finance should investigate the frequent changes in policy on import substitution by the Federal Government.