The Nigeria Customs Service ( NCS) says it is targeting the generation of N5. 08 trillion revenue in the 2024 fiscal year.
The Comptroller General of Customs, Mr. Bashir Adeniyi, disclosed this when he appeared before the House of Representatives Committee on Customs and Excise, to defend the 2024 budget of the Service.
He noted that the 2024 revenue target, which is 27.75 percent higher than its target for 2023 consists of N3.423trn in federation accounts, N554.35bn for non-federation accounts, and N1.101trn for import Value Added Tax ( VAT).
“For 2024 fiscal year, this target stands at 5.079 trillion and this consists of 3.423 trn in federation accounts, N554.35 bn for non-federation accounts, and N1.101 trn for import Value Added Tax. When we compare what was targeted in 2023 and 2024, this year’s target is higher by N1.41 trn, or approximately 27.75 per cent over the 2023 budget.
We are hoping that the 2024 fiscal policy measure would be rolled out in good time so that it would help the implementation. The second is tied to the issue of national single window.
“The project which has lingered on for quite some time is now being pursued very vigorously for better process ammonization and standardization. The inauguration of the steering committee has been approved by Mr President, and I’m very sure in the next few days, the steering committee would be inaugurated.
“The third driver is the introduction of the Vehicle Registration System and the Vehicle Identification Number valuation application, which has a huge potential for reducing undervaluation and vehicle tax evasion, thereby improving our revenue collection.” Mr. Adeniyi said.
2023 Shortfall
While speaking on the performance of the Service in 2023, he said that it had a target of N3.67 trillion in the outgone year, out of which it was able to generate N3.21 trillion owing to several factors.
He blamed the low income revenue generation in 2023 fiscal year on certain factors such as: election anxiety, cash crunch, Naira redesign as well as fluctuation Dollers exchange rate.
“In 2023, the revenue target for the service was N3.67tran and remarkably, the service collected a total revenue of N3.21trn from January to December 2023. When we compare what we collected in 2023 to what was projected as our targets, there was a negative variance of N462.9 bn, which represents 12.62 per cent of what was approved as revenue targets.
“Though we didn’t achieve what we projected, but we want to say with all sense of modesty that we did our best. And when we consider all factors, we will appreciate the fact that we at NCS did the best we could,” Adeniyi stated.
He blamed import of goods under the common external tariff and import duty exemption certificate, as some of the factors that militated against the Service’s ability to meet its revenue target for 2023.
The custom boss who also used the opportunity to appeal for legislative support, expressed regret that the agency was not able to achieve its target revenue income in the previous year for the benefit of Nigeria and Nigerians.
According to him, “one of the factors was the huge import of goods under Chapter 99 of the common external tariff, which resulted in a revenue loss of over N2trn. When we compare this to the total revenue that we had, that was a whopping 63.35 per cent of our total revenue collection.
“Also, revenue due to import duty
exemption certificates and other statutory provisions for the year (2023) was also in the region of N1.8 trn which was about 58.52 per cent of the total revenue generated. Cargo throughput dropped from 17.2 per cent to 15 2 per cent during the year. “
Earlier, Chairman of the Committee, Leke Abejide, said that the House was ready to reposition the NCS in its task of realising its revenue targets.
According to the lawmakers, the impact of E-customs cannot be overemphasised.
He urged the service to think outside the box to make a more technologically advanced Nigeria customs Service.
He further advised the Customs boss to always ensure that the budget framework is in alignment with the main objective of a reformed Customs service that will go with the time and deliver it’s mandate.
