Customs generates N904bn for 2015 amid lowering imports, porous borders

Despite the drop in import volumes and heightening activities of smugglers across the country’s porous borders, the Nigeria Customs Service (NCS), generated N904 billion  in 2015, a N40 billion shortfall from the N944 billion target for the year, figures obtained from the Service show.

The figures indicate that the service, known over the years for huge corruption at the country’s borders, generated N73.2 billion (January); N69.5billion (February); N78.9billion (March);N71.4billion (April); N68.4billion (May); N76.4billion (June), figures as seen by BusinessDay indicate.

Also, about N77.6billion was collected in July; 78.2billion in August; N74.7billion in September and N78.4 billion in October; N78.4 billion (November) and N78.26 billion in December.

UPDATED

The Customs was unable to match the N977.09billion it generated in 2014 as well as the N944 2015 target, but was able to generate N387.96 billion in just four months from September to December- a feat many analysts attributed to the reforms introduced by the present Comptroller General,Ahmed Ali.

Nigeria’s non-oil revenue generating institutions, including the Customsand and Federal Inland Revenue Service, have come under immense pressure to help rev up income, as oil prices continue to slump at the international market.

The challenge of crude oil theft, pipeline vandalism and consequent production shut-ins has continued to undermine output in recent years. Yet the level of corruption in the Service is still quite rife and the inability of the men of the Service to appropriately man the country’s porous borders remains a huge concern.

Ali’s reforms include his latest directive mandating all officers and men of the Nigeria Customs Service to make full disclosure of their assets within 14 days, in a new measure put in place to push transparency and compliance with the Rule of Law.

Ali also lifted restrictions on rice imports to help him meet collection target in a policy widely criticised as countering the Federal Governments efforts at encouraging rice production.

The Service announced late last year, that it recorded over N1 billion revenue on rice imports, through the land borders between October and November, but during the same period, the total quantity of rice imported through the land borders stood at 17.596 metric tons.

While expectations are high on the service and other revenue generating agencies to accrue into the Federation Account, the needed fund to run the economy in the face of dwindling oil price, it may have its 2016 target reviewed downwards.

Responding to BusinessDay’s question, Wale Fabiyi, Customs Public Relations Officer, said, “we have not been given any target to work on in 2016. We hope that will be given by next week.”There are however indications that the Federal Government will likely review downward, Customs Service collection target for 2016 to reduce pressure on the Service, especially in the face of dwindling imports.

Infact, the three year Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP)- authorities indicated they have programmed a lower collection for 2016 compared with 2015, since Customs collections are predicated on Cost, Insurance and Freight (CIF) value of imports, and an efficiency factor.

The document indicated that the decision on a possible lower target for Customs for the year is due to some effects of the Central Bank’s monetary policies, as well as government’s backward integration drive.

But the government hopes that with “the implementation of a coordinated border management strategy, as well as reinforced anti-smuggling activities through intelligence gathering and networking,” actual returns for the year should match projections.

KEHINDE ABDULSALAM