FG Approve Customs’ N369bn Budget, Raises Revenue Target To N965bn

Importers Can Import, Clear Goods Through Cotonou Ports - Customs

The House of Representatives Committee on Customs and Excise has approved a budget with estimates totaling N369.14bn for the Nigeria Customs Service in 2022.

The House also raised Customs’ revenue target for the next fiscal year by N965.42bn to N3.019tn.

The Controller-General of Nigerian Customs Service (NCS), Col. Hameed Ali (retd.), on Monday, led the management staff of the paramilitary agency to appear before the committee for 2021 budget appraisal and 2022 budget defense.

Reviewing the 2021 budget performance, Ali, in his presentation to the committee, noted that the approved revenue target for the year was N1.679tn, while Customs collected total revenue of N1.716tn for the period of January to December 2021.

“When compared with the approved revenue target of the same period January to December 2020, the Service surpassed its target by N504.34bn or 41.63 percent,” he said.

He said Customs collected the sum of N525.06bn as Value Added Tax on imports from January to December 2021, thereby bringing the total collection to N2.241tn for the period under review.

He said, “Most importantly, the above remarkable performance was recorded amidst the following militating factors: the standing government’s deliberate trade and economic policies (monetary/fiscal) such as the restriction of 43 items from accessing forex at official window.

“The non-functional scanners at the various Customs’ scanning sites. This factor has adversely affected the Service’s ability to carry out effective examinations for selective consignments. Only two commodities – cigarette and alcoholic beverages – were under excise control within the period under review.

“Despite the service’s anti-smuggling drive, the nation’s borders remain largely porous which leads to smuggling activities. The extant laws of the service such as the CEMA and Legal Notices are being reviewed.”

Speaking on the proposed 2022 budget, he said, “The revenue target for the year 2022 is based on the Medium-Term Expenditure Framework approved by the National Assembly.

“The revenue target for NCS in the 2022 financial year is set at N3.019tn, consisting of N2.019tn for the Federation; N253.23bn for non-federation; and N746.96bn for import VAT.

“When compared with the 2021 revenue target, the 2022 revenue target is higher by N965.42bn or 31.98 percent.”

The Chairman of the committee, Leke Abejide, in his welcome address, said the lawmakers had met with the NCS management behind closed doors where most of the issues in the Customs’ finances had been discussed and agreed upon.

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