How Currency Redesign, Electoral Uncertainties Affected 2023 Revenue – Customs CG
Comptroller General of the Nigeria Customs Service, Bashir Adeniyi, on Wednesday said the currency redesign policy of the Central Bank of Nigeria (CBN) and the spillover effect of the cash crunch which slowed down the economy largely affected revenue collection of the service in 2023.
Adeniyi said that the revenue target for the year was pegged at N3. 669 trillion, it was able to collect N3.207 between January and December 2023 despite several factors that affected its operations.
He said that for the service to realise, or surpass its N5.1 trillion revenue target for 2024, the impediments that led to huge revenue loss of over N1 trillion in revenue in 2023.
Speaking when he appeared before the House Committee on Customs and Excise to defend the 2024 budget of the service, Adeniyi listed about eight factors that militated against the revenue generation drive of the service in 2023.
This includes the huge importation of goods under chapter 99 of CET which resulted in a total revenue loss of N2.031 trillion, a huge loss due to Import Duty Exemption Certificate and other statutory provisions resulting in the loss of N1.876 trillion, and a drop in cargo throughput within the year.
It also includes pre-election and post-election uncertainties and anxieties which created a dark climate on trade and general business cycle in Nigeria, the issue of currency redesign and its spillover effect of cash crunch that slowed down the economy and the delay in the rollout and implementation of the 2023 fiscal policy.
He also blamed the suspension of excise policies on carbonated drinks, telecommunications charges, single-use plastics abs green tax which he said affected excise collection within the period, resulting in a drop in excise revenue.
He said further that the service is looking forward to a timely rollout of the 2024 fiscal policy measures to enable it to commence implementation policy as well as the commencement of three National Single Window projects that have lingered on for several years and are still being pursued for better process harmonization and standardization for enhanced revenue generation.
Adeniyi said further that the introduction of V-reg and VIN valuation applications has huge potential of reducing under-valuation and vehicle tax aversion, thereby improving collection, adding that the revised penalties and charges in the new Customs Act will improve the service revenue generation.
He said the service intends to provide a flexible window for the perfection of illegally imported vehicles to ensure the collection of expected import duties and a 25 percent penalty charge from such category of transaction which will enable the government to realise more revenue.
He disclosed that the service is already working in collaboration with other sister agencies, like the Federal Road Safety Commission to reduce incidences of smuggling.
He explained that the service will soon sign a MoU with the FRSC to ensure that at the point of Vehicle registration, those who failed to pay the required duties are referred back to Customs.
He also said that the Customs Service plan an intensive revenue recovery drive, using some mechanisms which include system audit, post-clearance auditing, the institution of a revenue recovery committee and other intelligence-gathering tools.
The Customs Boss said further the service was looking forward to the area of cargo tracking and is working with other relevant government agencies for effective monitoring of cargo movement to avoid diversion and theft.
He said the area of port decongestion was receiving attention for effective and efficient port operation as well as effective anti-smuggling campaigns to ensure that illicit trade that creates revenue leakages and economic sabotage is reduced.
He disclosed that the service has already written to the Minister of Finance and awaiting a response on the suspension not collection of excise on carbonated drinks and other items as well as early release of the 2024 fiscal policy.
Chairman of the committee, Leke Abejide (ADC, Kogi) said following a thorough examination of the 2023 budget performance and the 24 budget proposal, the Committee was set to recommend the approval of the Nigeria Customs Service’s projected revenue, a 2% share of imports VAT, ongoing Capital Projects, personnel and operational costs, capital costs, and a total budget of A706,434,216,877.66
He stressed the importance of substantial provisions for Corporate Social Responsibility to enhance the agency’s relationship with communities and personnel.
Abejide said the detailed report will provide comprehensive insights into these recommendations, reflecting our commitment to responsible fiscal governance
He said further that the committee must reflect on our mandate to oversee the fiscal affairs of the Nigeria Customs Service and uphold the principles of good governance.
He said: “Our responsibility extends beyond mere oversight; it encompasses a solemn duty to safeguard the interests of the Nigerian people and ensure that public funds are utilized judiciously for the benefit of all”.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
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