FG begins performance-based incentive plan for Customs

In a bid to significantly increase the level of revenue generation from the Nigerian Customs Service (NCS), Kemi Adeosun, minister of finance, has disclosed that the agency is working on the introduction of performance related pay to motivate improved collections on the part of the NCS and to reduce corruption.

Adeosun, who disagreed with the Comptroller-General of Customs, Ahmed Alli, who called for an improved remuneration for Customs instead of the proposed incentive plan, said a review of the constraints currently impacting performance of the NCS had been undertaken.

“This exercise found that the provision of modern equipment, elimination of inappropriate waivers and remuneration emerged as issues,” the minster said.

She disclosed further that a consulting firm had been hired and was working with the NCS to develop and implement a performance-based incentive plan to ensure that there was an alignment of interest between individual Customs officers and government objectives.

Speaking at a Senate hearing to review revenue projections in the 2016 budget held in Abuja on Tuesday, the minister further explained, “Appropriate remuneration of revenue collecting agencies to align with the interests of staff with maximising collections is critical to motivate performance and to reduce temptation to compromise.”

She told the senators that such a structure already existed in the Federal Inland Revenue Service (FIRS), which was working well and needed to be extended to the Customs.

Being an import-dependent nation, there is room for improvement in revenue generation from the country’s ports, she said, saying there was a disconnect between the volume of imports and the recorded revenues from NCS, which would be addressed by the new strategy being deployed.

She expressed commitment to the provision of all modern equipment needed to minimise discretion in Customs assessments and thus enhance revenue.

Corroborating the minister’s position, the Comptroller-General of Customs, said the authorities were looking into areas of improving the performance of the NCS through deployment of technology solutions, training, upgrading of the agency’s infrastructure and improved welfare.

During the same hearing, Tunde Fowler, executive chairman, FIRS, stated the management of the FIRS had moved the achievement threshold for its performance related pay from 60 percent to 80 percent. The implication of this, according to him, is that staff will only be entitled to benefit from performance incentives if at least 80 percent of the agency’s revenue target for the year is achieved.

KEHINDE ABDULSALAM