Nigerian Senate to Raise Customs Revenue Target from April

The Senate on Monday, told the Nigeria Customs Service (NCS) that the N5.079 trillion 2024 revenue target of the agency would be reviewed upwards from the second half of the year to save the country from further borrowings.

Chairman, Senate Committee on Customs, Isah Jibrin, stated this at a meeting with the Comptroller General of the NCS, Adewale Adeniyi and top management of the Customs.

Jibrin said, “first of all, Nigeria is saddled with lot of debt obligations and we need to wriggle ourselves out of that trap and one of the ways to do that is internally generated revenue.

“Customs is one of the major providers of internally generated revenue and as it is today, we expect them to play one of the major roles in this drive to reduce our debt burden.

“We need to pay off what we are owing now and minimise additional loans we are going to take.

“Customs is in a very good position, if they are able to block all perceived leakages, they should be able to generate significant amount of income that will enable Nigeria get out of debt at least partially.”

The Kogi East Senator explained that the concessions given to some sectors of the economy, especially, agriculture, was to encourage those who are into agricultural services, solid minerals and those whose services have direct impact on the economy.  

He said, “If somebody is bringing agricultural equipment into the economy and you try to take something out of that person in a way of import duty, that will discourage the person and that is what we are saying.  It is not that anybody took that money or Customs compromised in the course of their services.

“Concessions were in the interest of Nigeria to encourage importers who are going into specific areas in the economy.  There is a tradeoff here between importers and the country, particularly the things you think you are generating.”

He described as too high, the rate of unemployment in Nigeria.

The Senator said, “Customs is not the only employer of labour.  They can only employ the number they believe they can adequately take care of and we are putting them under pressure to exceed the 1,600 benchmark.  

“We may not get beyond 2000, but for sure, we will get 1,600 and like we all know, there are so many unemployed Nigerians out there, I will always say, it is difficult for the Nigeria Customs Service to absorb all unemployed Nigerians, but they can only employ those they can.”

The CG, NCS had earlier told the lawmakers that the Service was seeking approval from government to allow them give waivers to owners of smuggled cars to allow them regularise their payment of Customs duties.

He said the approval if given, would enable owners of smuggled vehicles about three months within which they could regularise their documents with the NCS.

He added, “If the approval is obtained by the NCS, owners of smuggled vehicles could within three months, that they are in possession of vehicles that were illegally imported into the country or that have not paid duties,  have this opportunity to go to Customs House for assessment and payment of duties.”

This he said, “will be done after adequate publicity so that those who find themselves in such situation can get their vehicles regularise through payment of duties.”

Adeniyi, said he was equally pained by the volatility in the exchange rate regime.

He added, “In fact, even if it stays high and people can predict that this is what it will take me to clear, perhaps it is not particularly too bad, but when it is so volatile, today it is X, tomorrow it is X+10, X+20, it does not make for adequate planning and things like that.

“Correctly, it is the mandate of the Central Bank of Nigeria, (CBN) to fix the rate, either the one we use during Medium Term Expenditure Framework, MTEF or the one we use for importation or the one used for payment of Customs duties.

“I have been in discussions with my minister. Perhaps, what you are going to advocate is that there would be a meeting point between authorities of government that are in charge of monetary policy and those in charge of fiscal policies.”

Sunday Aborisade

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