By Christiana Ekpa
The House of Representatives Committee on Finance has raised serious concerns over discrepancies in the volume of sugar imported into Nigeria and the revenue accruing to the National Sugar Development Council (NSDC), as part of its ongoing Revenue Monitoring Exercise for the 2023–2025 fiscal years.
Chairman of the committee, James Faleke, expressed the concerns when the Executive Secretary of the National Sugar Development Council (NSDC), Kamar Bakrin, appeared before lawmakers to provide details on sugar importation and revenue generation in the sector.
During the session, Faleke questioned the reliability of the council’s data on sugar imports, suggesting that the figures presented might not accurately reflect the actual quantity of sugar entering the country.
In response, Bakrin explained that the NSDC does not directly collect revenue from sugar imports. According to him, the Nigeria Customs Service is responsible for collecting the sugar levy at the ports and remitting the funds into the appropriate government accounts.
Bakrin clarified that the council’s role in the importation process is primarily regulatory and advisory. Companies seeking to import raw sugar, he said, must obtain import licences issued based on recommendations from the council, which evaluates the performance and compliance levels of operators and processors in the industry.
He added that the council’s recommendations are transmitted through the supervising ministry to the President for final approval.
According to Bakrin, approximately two million metric tonnes of raw sugar importation were approved within the period under review.
He further noted that the NSDC funds its operations largely through a portion of the sugar levy collected by the Nigeria Customs Service.
The funds, he said, are released periodically by the Office of the Accountant General of the Federation based on appropriations approved by the National Assembly.
Bakrin explained that the council typically writes to the Accountant General’s office on a quarterly basis to request the release of funds to support its projects and programmes aimed at developing Nigeria’s sugar sector.
However, Faleke maintained that the council must establish a more reliable mechanism for verifying the actual volume of sugar imported into the country.
He warned that relying solely on figures supplied by the Nigeria Customs Service could lead to discrepancies and affect the accuracy of government revenue records.
The lawmaker stressed that the data currently available to the council appears to underestimate the true quantity of sugar entering the Nigerian market, raising concerns about possible revenue leakages.
Faleke therefore urged the NSDC to strengthen its monitoring and reconciliation framework with relev
ant agencies, particularly the Nigeria Customs Service, to ensure accurate data management and greater transparency within the sector.
He emphasised that proper tracking of imports is essential for effective revenue generation and accountability.
Meanwhile, the committee also directed the Nigerian National Petroleum Company Limited (NNPCL) to provide detailed information on Nigeria’s oil assets and equity participation in oil wells across the country.
Faleke specifically instructed the organisation’s Financial Controller, Tajudeen Karim, to submit a comprehensive breakdown of all oil wells in which Nigeria has equity participation.
The committee requested a detailed list showing the ownership structure of the wells, including those operating under Joint Venture (JV) arrangements, Production Sharing Agreements (PSAs), and wholly owned assets.
According to Faleke, the information should also include production volumes from each well and the corresponding share accruing to Nigeria under the applicable agreements.
“They do that under certain laws or agreements which they sign with you. In some cases we have percentage shareholding 60/40, 50/50, and there are wells that are 100 per cent owned. You have to identify them separately,” Faleke said.
He added that once the committee receives the full list of oil wells and their shareholding structures, the NNPCL will be required to present production data alongside Nigeria’s equity share in line with the contractual agreements governing each asset.
Faleke further directed that all the requested information must be clearly reflected in supporting documents submitted to the committee to enable proper verification.
The committee stated that the ongoing exercise forms part of the National Assembly’s oversight responsibility to ensure transparency, accountability, and proper remittance of revenues by government agencies into the Federation Account.
