Sierra Leone blocks Aminata fuel deal saving $33 Million in taxes

A controversial proposed agreement that would have handed sweeping tax concessions to the biggest importer of oil to Sierra Leone, Aminata & Sons Limited, has been derailed by lawmakers following an outcry over its fiscal impact. The decision blocks a move that MPs warned would have cost the government $11 million annually, totaling a steep $33 million loss in state revenue over a three-year period.

The deal, which had initially been pushed to parliament, sought to grant the fuel giant a deferred tax holiday to finance the construction, rehabilitation, and maintenance of petroleum storage tanks. However, parliamentary leaders stepped in just in time to save the day. The proposed deal provided zero benefit to a cash-strapped public treasury.

“A Cash Cow” Industry

Speaking on Truth Media, the Deputy Speaker of Parliament, Hon. Ibrahim Tawa Conteh, defended the legislature’s intervention, calling out the petroleum sector as a highly profitable, “mature” market that should be generating revenue rather than consuming subsidies.

“Di petroleum industry na a matured industry. Na an industry wey, na a cash cow, they dey make money everyday,” Conteh said, noting that Aminata alone imported roughly 15.5 million liters of petroleum products (AGO and PMS) in January alone.

Conteh argued that because storage capability is not a pressing national crisis, granting tax reliefs to a dominant player represents an unnecessary sacrifice of the state’s economic lifeblood. Lawmakers also highlighted a glaring loophole in the draft contract: it failed to state a fixed monetary value specifying exactly how much the company was legally bound to invest in exchange for the tax break.

Arbitrage Risks and Sub-Committee Blindspots

Parliamentary analysis suggested that the structure of the deferred tax format invited financial manipulation. Under the proposal, the company would have kept its tax money for three years, paying it back later at a minimal 5% fee.

In contrast, the Central Bank of Sierra Leone’s fixed-deposit rates currently hover above 25%. Critics pointed out that Aminata could effectively profit off of state funds by parking the deferred tax dollars in government securities, extracting a clean 20% margin using the state’s own money.

When questioned on how the deal advanced through the executive branch into the parliamentary pipeline, Conteh implied it was an oversight born of Cabinet fatigue.

• Overloaded Agenda: With over twenty ministries consistently filing proposals, the executive branch relies heavily on sub-committees to vet details.
• Missing Signatures: It was revealed that the Minister of Finance had not actually appended his final signature to the document before it was dispatched to the House.

A Firm Precedent

Sierra Leonean lawmakers are drawing a hard line, asserting that other regional players like Total, Leonco, and NP have historically upgraded their massive storage architectures without seeking hand-outs from the state treasury.

Furthermore, Parliament emphasized that neighboring West African nations—including Liberia, where Aminata originates—strictly deny tax exemptions to mature petroleum marketing firms.

The Ministry of Finance has been sent back to the drawing board. For the foreseeable future, the agreement has been completely scrubbed from the legislative docket.