The House of Representatives Committee on Finance has raised concerns over discrepancies in the reported volume of sugar imported into Nigeria and the revenue accruing to the National Sugar Development Council (NSDC).

Chairman of the committee, Hon. James Faleke, expressed the concerns during the committee’s ongoing Revenue Monitoring Exercise covering the 2023–2025 fiscal years.

While taking on the Executive Secretary, Mr Kamar Bakrin, Faleke questioned the accuracy of the council’s data on sugar imports, noting that the figures presented by the agency might not accurately reflect the actual volume of sugar entering the country.

Faleke maintained that the council must establish a more reliable mechanism for verifying the actual volume of sugar imported into the country.

He stressed that relying solely on figures supplied by the Nigeria Customs Service may lead to discrepancies and could ultimately affect the accuracy of government revenue records.

The chairman warned that the data currently available to the council appears to underestimate the true quantity of sugar entering the Nigerian market, raising concerns about potential revenue leakages.

Faleke urged the NSDC to strengthen its monitoring and reconciliation framework with relevant 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 critical for effective revenue generation and accountability.

While responding, the Executive Secretary 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.

He further clarified that the council’s role in the importation process is largely regulatory and advisory. Bakrin said companies seeking to import raw sugar must obtain import licences, which are issued following recommendations by the council based on the performance and compliance level of operators and processors in the sector.

According to him, the recommendations are transmitted through the supervising ministry to the president for final approval.

According to Bakrin, about two million metric tonnes of raw sugar importation were approved within the period under review.

He added that the NSDC funds its operations primarily through a portion of the sugar levy collected by the Nigeria Customs Service. The funds, he noted, 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 Office of the Accountant General on a quarterly basis to request releases to fund its projects and programmes aimed at developing Nigeria’s sugar sector.

In a related development, 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.

He requested a detailed list indicating 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 would 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 properly reflected in supporting documents submitted to the committee to enable effective verification.