Senate to review import duty on soap noodles

The Senate Wednesday adopted a motion to review the import duty on the importation of soap noodles to save the industry and the Nigerian economy.

This followed a motion by Senator Barau Jibrin (APC Kano North) and four others, who drew the attention to recent downward, review of the import duty from 35 per cent to10 per cent.

The senator recalled that the federal government had, in order to boost the local production of soap noodles, increased its import duty.

Barau said the increase made it unprofitable for the manufacturers of soaps to import soap noodles from overseas.

This, he said made the manufacturers to resort to making huge investment in setting up manufacturing lines to produce soap noodles in Nigeria to the tune of about N450 billion .

He said the measure also resulted in the creation of 250,000 jobs in the country.

He, however, said the downward review would lead to massive importation of soap noodles into the country thereby having negative impact on the national economy.

According to him, the reduction will act as discouraging signals to investors and put pressure on the forex reserve.

He said the reduction would result in the collapse of the soap industry and reduction in government revenue drive.

Barau said the reduction would serve as an impediment on government’s effort toward developing local sourcing and self sufficiency.

Senators  Adamu Alero(APC Kebbi Central) Chukwuka Utaezi (PDP Enugu North), Isa Jubril (APC Kogi East), among others made contributions during the debate.  

They raised concern on the negative impacts of the downward review policy on the nation’s economy given the recent recession.

President of the Senate Dr Ahmad Lawan said the motion was apt, noting that it was important to promote the nation’s industries.

He said the committee on industry, when constituted, would liaise with relevant ministries and agencies on the motion. (NAN)

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