Banking Budgeting Fiscal Law & Act Latest News National Assembly Planning & Economic Development Political Economy Revenue Revenue Agencies Taxation Technology Transportation

Senate Approves Customs’ N5.09Trn Revenue Target For Fiscal 2024

Nigeria’s Senate has approved the sum of N5.079 trillion as a revenue target and N706.4 billion as budget for the Nigeria Customs Service (NCS) in the 2024 fiscal year.

The Red Chambers’ approval of the proposals followed the consideration of a report presentation by the Chairman of the Committee on Customs, Excise, and Tariff, Senator Jibrin Isah, during the plenary session last week.

Addressing the plenary, the committee’s chairman disclosed that personnel costs of the Service’s proposed budget totalled N225.99 billion and overhead costs at N111.76 billion, representing 31.99% and 15.82% of the budget respectively.

This is even as he told the lawmakers that its ongoing capital projects stood at N148.42 billion while new projects, which represents 52.19 percent, earmarked for N220.26 billion.

Giving a further breakdown of the NCS’ proposed budget, Isah expressed optimism that timely approval of the proposed fiscal provisions in the budget would enable the Service to commence implementation promptly.

He said: “As part of Customs strategy, the provision of the flexible window will help curb illegally imported vehicles and ensure the proper collection of expected import duties and 25 percent penalty charge from such category of transactions.

“Mechanisms such as systems audit, real-time auditing, post clearance auditing, institution of revenue recovery committee and other intelligence gathering tools will ensure intensive revenue recovery drive”, Isah added.

According to him, the revised penalties and charges in the new Nigeria Customs Service Act, 2023 will improve the Service’s revenue generation.

On anti-smuggling and cargo tracking roles of the revenue agency, the lawmaker explained that the Service looks forward to collaboration with the Nigerian Shippers Council and other relevant government agencies to decongest and achieve efficient, effective port operations, which would yield more revenue.

Isah further clarified: “As provided within the confines of Customs law, all required operational guides will be utilised to ensure that illicit trade that creates a sphere for revenue leakages, as well as economic sabotage, are reduced to the barest minimum.”

It would be recalled that the Comptroller-General of Customs (CGC), Mr. Adewale Adeniyi, had earlier convened a Steering Committee meeting to consolidate the previous gains achieved in the implementation process of the Nigeria Customs Service (NCS) Trade Modernization Project (TMP) aimed at enhancing trade facilitation.

In a closed-door meeting held at the Customs’ headquarters in Abuja last Thursday with members of the TMP Steering Committee, Adeniyi explained that the project was designed to achieve end-to-end automation of the processes and procedures of the NCS.

According to him, the Trade Modernization Project encompasses the Unified Customs Management System, Trade Portal, and Cargo Release System, alongside Automation Services such as Big Data & AI Integration and Document Management System, as well as Transition & Handbook, covering Technology Upgrades and Enhanced Capacity Building.

While noting that the project has been identified as a milestone, highlighting the significance of digitization for transparency, efficiency, and effectiveness, Adeniyi said that it also sets the stage for adapting to evolving market dynamics in trade, optimizing operations and procedures, and creating new pathways to unlock revenue streams.”

He expatiated: “This project will be able to address the challenges before us, answer tough questions, and make good decisions that will propel the service forward. We will discuss some of the highlights in detail so we can review the implementation of decisions taken.

“I’m optimistic that we will have robust discussions and make very good decisions. I’ve also seen some highlights of the reports of the last meeting. Hopefully, along the line, we will discuss those in detail,” CGC added.

Spread the love