Comptroller General, Nigeria customs service(NCS),Colonel Hammed Ibrahim Ali rtd,(middle), Deputy comptroller General in Charge of Finance, Administration & Technical Services, David Chikan (left) and Director, Legal Service, NCS, Smart Akande(right),during the 2022 budget defence of the Nigeria customs service by the House of Representatives committee on Customs at the National Assembly in Abuja, yesterday PHOTO: JONATHAN LOIS
By Gift Chapi Odekina
The House of Representatives have set a target of N3.019 trillion revenue for the Nigerian Customs Service (NCS) for the 2022 fiscal year.
Chairman, House Committee on Customs and Excise, Hon. Leke Abejide made the revelation on Monday during the 2022 budget defence attended by the NCS Comptroller-General, Maj-Gen Hameed Ali (Rtd.).
Commending the Service for exceeding the N1.678 trillion revenue projection set by the National Assembly as against the sum of N1.465 trillion initiated by Agency during the 2021 budget defence, the lawmaker expressed delight over the N2.241 trillion realised as at the end of the 2021 financial year.
Abejide further observed that from the recent circular from the Office of the Secretary to the Government of the Federation (OSGF) which raised the threshold Service-Wide for Ministries, Department and Agencies (MDAs) on contract awards, harped on the need to ensure that all the MDAs improve on revenue generation.
He also disclosed that the joint Senate and House Committee on Customs and Excise have unanimously resolved to earmark reasonable amount to rehabilitate the 13 scanners out of the N27 billion surplus realised from the 2021 revenue.
“Another area we want your budget to capture is the Corporate responsibility so that communities where Nigeria Customs and even people that work with Customs can have a belonging or take ownership of the agency.
“The information you need and assistance to tackle smugglers shall be provided by the people easily but as it is now the NCS is seen as these societies because they feel you only want out of their area with little or no concern about their Nigeria army does much more of Corporate Social for the general public and their hosts, and other revenue Generating Agencies, and that is the reason for less reported acrimony and attacks against them.
“We want to change the budget cycle of the NCS to fall in line with national budget. On this note the NCS budget should be ready from mid-November, so that we shall work it and pass every December or before embarking on Christmas and New year break.”
In his presentation, the NCS Comptroller General, Hameed Ali explained that the revenue target for NCS in the 2022 financial year is set at N3.019 trillion, consisting of N2.019 trillion for the Federation; N253.23 billion for Non-Federation and N746.96 billion for Import Value Added Tax (VAT).
According to him, when compared with the 2021 revenue target, the 2022 revenue target is higher by N965.42 billion or 31.98 per cent.
On strategies to improve revenue generation in 2022, Ali said considering the federal government pursuits toward improved Internally Generated Revenue, the Service is in collaboration with the relevant government authorities to ensuring effective implementation of the said Act, hence the attractable excise duty of 6 per cent on Telecommunication Services and N10 per litre on Carbonated drinks are expected to commence fully within the fiscal year, 2022.
He also informed the Committee that the Service has installed three functional mobile scanners at different Customs locations, adding that subsequent to the purchase and deployment of operational vehicles, two sea-going vessels and eighteen patrol boats across Customs’ formations, would enhance the suppression of smuggling activities across difficult terrains.
“The Post Clearance Audit and Systems Audit Units of the Service, which were created to uncover illicit financial activities, are expected to contribute maximally in the Service’s quest for improved revenue generation in the year, 2022. The Service will maintain and deepen its collaboration efforts with relevant agencies.
“The absence of this measure is a potential avenue for tax evasions and economic sabotage. Thus, high level of this relationship must be deliberately structured in order to broaden our tax collectability,” he added.
