Reps put Customs on toes over N3 trn revenue target

The House of Representatives on Monday put the Nigerian Customs Service (NCS) on its toes, insisting that the agency must work hard to meet its revenue target of N3.019 for the 2022 fiscal year.

The House Committee on Customs and Excise gave this indication at the presentation of the Nigeria Customs Service 2022 budget proposals at the National Assembly Complex, Abuja.

Leke Abejide, chairman of the Committee, said from the recent circular from the Office of the Secretary to the Government of the Federation which raised the threshold service-wide for Ministries, Department and Agencies (MDAs) on contract awards, it will be unforgivable for any agency not to perform better in revenue generation at the end of this year.

Abejide told the Controller-General of Customs, Hameed Ali, that he would not accept the presentation of the 2023 budget proposal of the Service if there is no significant performance in 2022 capital projects.

“In the budget defence of 2021 where the CGC presented the sum of N1.465 Trillion, and I said the amount was low compared to the parameters prevailing at the time, such as reduction and removal of 35percent levy on new automobile, devaluation of the Naira by the CBN, and unavailability of vaccines that made many economies hitherto closed to be opened.

“Thus, the target was raised to N1.678 trillion. It was contested by the Comptroller General of Customs and his Team that it may be impossible but at the end of 2021, the Nigeria Customs Service collected the sum of N2.241 trillion, the stated.

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Abejide said the Committee of Customs of both Chambers of the Senate and House of Representatives have resolved that a reasonable amount enough to put back into use the 13 of the 22 faulty scanners be appropriated out of the N27 billion surplus from the 2021 Collections and that would be incorporated into the 2022 budget.

The lawmaker said the Committee would change the budget cycle of the NCS to fall in line with the national budget and the service budget should be ready from mid- November, so that lawmakers shall work it and pass it every December.

He said: “If you notice it is only the NCS Budget that suffers delay into the first quarter and even sometimes, into the Second Quarter. We want to discourage this trend so that you can perform in the area of capital projects. We equally want to suggest that the CGC and Management Team, especially, the department be saddled with the responsibility of executing the capital projects to implement capital projects in phases.”

In his presentation, Ali said the revenue target for NCS in 2022 financial year set at N3.019 trillion, consists of N2.019 trillion for Federation; N253.23 billion for Non-Federation and N746.96 billion for Import Value Added Tax (VAT).

He said when compared with the 2021 revenue target, the 2022 revenue target is higher by N965.42 billion or 31.98% which could be achieved through strategies to improve revenue generation such as E-customs project implementation and commencement of the attractable excise duty of 6% on telecommunication services and N10 per litre on carbonated drinks.

The Customs director general said another strategy is the installation of functional scanners, stating that; “three functional mobile scanners have already been installed at different Customs locations. This would translate to effective trade facilitation and enhance revenue generation in 2022.

“Anti-Smuggling Campaign: Subsequent to the purchase and deployment of operational vehicles, two (2) sea-going vessels and eighteen (18) patrol boats across Customs’ formations, would enhance the suppression of smuggling activities across difficult terrains and improve on the Services’ revenue generation.”