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Banks, Companies who abuse Forex should be sanctioned- Sen Uzodinma.

Banks, Companies who abuse Forex should be sanctioned- Sen Uzodinma.

Federal government should blacklist and sanction companies and Banks found culpable of foreign exchange abuse, said chairman of the Senate Committee on Custom, Exercise and Tariffs, Senator Hope Uzodinma while addressing newsmen in Abuja on Thursday.

According to the Senator, the Committee discovered that most companies are in persistent practice of abusing federal government fiscal policies.

In a statement he said:

“The Federal Government will not only blacklist these companies but will also ensure that expatriates behind these companies are deported to their various countries,”

He explained that “these fraudulent actions are some of the reasons why there is 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 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.

The lawmaker cited existing situation where most automobile companies were bringing in goods as either Semi-Knocked Down (SKD) or Completely-Knocked Down (CKD) items.

“The little revenue that government would have collected through Customs is lost through 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 illegal practices.

The federal government should take a proactive measure to address the situation as the country stands to lose revenue should the activities of these companies be treated with a pinch of salt.

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