Customs raises concerns on meeting N3.09trn revenue target

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* Says automation of service will generate $176

* Sacks 2000 officers over sharp practices

By Mathew Dadiya, Abuja

The Nigeria Customs Service (NCS) has raise the alarm over it ability to meet up with the N3.09 trillion revenue target for the 2022 fsical year.

It disclosed that they have collected N2.143 trillion out of the N3.019 trillion target given by the Federal Government.

Speaking at the 54th Session of the State House Briefing organised by the Media Department at the Presidential Villa, Thursday in Abuja, the Comptroller-General, Col. Hameed Ali, said they may not be able to meet the target this year but expressed hope for 2023.

He said one key area of President Muhammadu Buhari’s administration was laying a solid foundation to expand the revenue base of the nation and ensure a steady progression in the economy through institutional reforms.

Ali disclosed that they have strategic approaches to block revenue leakage and have succeeded to identify the leakages and blocked them.

According to him, the NCS was generating N876 billion annually to the federation account but after the leakages were blocked it revenue increased to N2.1030 trillion in a year.

He revealed that total collections from these items under excise between 2015 and May 2022 amounted to N610.865 billion.

“From June 2022 to the present time the collection from non-alcoholic, sugary and carbonated drinks totaled N20.391 billion with an outstanding revenue at the close of business in September of N773.943 million.

“By the end of the last quarter of 2022, the Service anticipates collecting about 35 billion naira from this sector alone or 10.2% of its total collectable duty from excise taxes on sugary/carbonated drinks,” he said.

The Customs boss who said, there was no room for under declaration of goods; stressed that “I’m looking forward to the day we will be collecting more excuse /industrial duty.”

Ali said that the only way Nigeria can protect her border is by huge investment in technology, adding, “we are working electronically and scientifically to generate revenue.”
Automation of the Nigeria Customs Service will generate about $176 billion and instill paperless Customs (Office Automation System, Human Resource Management, Document & Asset Management System), Infrastructure upgrades (Customs Data Centre & Network) and Marine Deployment.
The Comptroller-General said he aligned the organizational structure with the reforms agenda and unbundling of Commands/Units and creation of new Commands to achieve strategic objectives in non-intrusive inspections, marine, air-wing, excise, Oil & Gas Free Trade Zones, and export.
“I have enhanced Human Resource Management by ensuring proper placement of officers and men, define clear paths for career progression and ensure promotions based on merit; enhanced welfare for officers and men, salary increase, better housing facilities, well equipped administrative facilities, regular postings to prevent favoritism/corruption and better healthcare,” he said.

The Finance Act 2021 provided for the amendment of section 21 of the Customs Excise Tariff and allows for the collection of excise duties on non-alcoholic, sugary and carbonated drinks from June 2022.
Meanwhile, the Customs boss said he has sacked over 2000 officers for indulging in corrupt practices waring that it would ensure the service is sanitized.
Excise duty, prior to this amendment, was levied on the local manufacture, sale and consumption of beer, spirits, other alcoholic beverages, cigarettes and tobacco among others, Ali said.

One excise on telecommunications services, Ali explained that the Finance Act 2021 provided for the amendment of section 21 of the Customs Excise Tariff and allows for the collection of excise duties on telecommunications services from June 2022 adding that the current statistics puts the total number of phone users in Nigeria at over 204 million persons.

According to the NCS boss, the Federation Account provides for the collection of 5% on all telecommunications services, voice, data and others.

“NCC data reveals Nigerians spent N3.25 trillion on telecommunications service in 2021, extrapolating that the Service anticipates a collection of about N162.5 billion from this Service alone.

On creation of dedicated export command, Ali explained that exports have long since been identified as having huge potentials in foreign exchange earnings and the value of non crude exports (agricultural products) in 2021 was over N500 billion, assuring that the sector has the potential of growing over 100% with the right incentives and support.

He said the challenges faced by exporters have been addressed through the creation of dedicated export Commands, saying that the pilot scheme is located in an accessible off-dock facility at Lilly-Pond Ijora Lagos.

Export Commands are being modified to simplify and harmonize documentation while insisting on standardized packaging to make Nigerian goods more acceptable in the international market, the Comptroller-General said.

“Nigeria Customs Service has contributed its quota in the notable economic achievements of this administration over the past 7 years, especially through exemplary accountability that has been the fulcrum of NCS Management,” the Comptroller-General said.

The purpose of this briefing was to highlight some of the incentives and critical policy initiatives introduced by the Comptroller General and his Management team to support the vision of Mr. President and his administration to further grow the economy and sustain the anti-corruption fight.

Ali said that the NCS multi-strategy approach has yielded record seizures with total Duty Paid Value of N188.626 billion on all prohibited and offensive items.