The Senate on Wednesday approved a total of N1.678 trillion revenue target for the Nigeria Customs Service (NCS) for the 2021 fiscal year.
The Upper Chamber also, in a news report by the News Agency of Nigeria (NAN), at the plenary approved a total expenditure of N257 billion for the Service, including retained earnings for its ongoing projects for the year based on the recommendations of its Committee on Customs Excise and Tariffs.
The approvals followed the consideration and adoption of the report by the committee after the President of Senate, Ahmad Lawan, put it to voice vote.
Earlier during the presentation of the report, the Chairman of the committee, Senator Francis Alimikhena reported that the Service had proposed a revenue target of N1.46 trillion, comprising N1.267 trillion for the Federation Account and N197.996 billion for non-Federation Account.
The lawmaker said the committee, however, considered the target inadequate in view of the provisions of the recently signed Finance Act 2021 as they relate to the expansion of excisable items as well as the adjustment of the official exchange rate of the Naira to Dollar by the Central Bank of Nigeria (CBN).
Senator Alimikhena listed some of the excisable items as carbonated drinks in addition to tariff review on vehicles and re-opening of the border.
He said: “This means the collectable duty of every import will increase in naira term than when the rate was N381 to one dollar. All these will significantly increase the revenue target of the NCS in 2021 budget year.
“In view of the fore-going not captured in the Medium Term Expenditure Framework (MTEF 2020), the committee hereby increases the NCS revenue target from N1.46 trillion to N1.678 trillion”, the lawmaker added.
According to him, the agency’s cost of collection was pegged at 1. 7 per cent just as the Value Added Tax (VAT) was pegged at 2.2 per cent.
The committee chairman explained that the proposed expenditure of N257 billion, including retained earnings for ongoing projects for the 2021 financial year, was approved by the committee.