Senate pushes Customs for higher revenue target to reduce debt

The Senate is urging the Nigeria Customs Service (NCS) to significantly increase its revenue target of N5trillion from the second half of 2024 to help the nation reduce its growing debt burden.

This comes after the NCS fell short of its 2023 target, generating N3.21 trillion instead of the projected N3.67 trillion.

Chairman, Senate Committee on Customs, Senator Isah Jibrin, during a crucial meeting with Adeniyi, and top management of the NCS on Monday emphasized the NCS’s critical role in minimizing the country’s reliance on borrowing.

“Customs is one of the major providers of internally generated revenue, and we expect them to play a major role in reducing our debt burden,” he declared.

Senator Jibrin highlighted the need for the NCS to tighten its operations and address perceived loopholes to increase revenue generation.

“We need to pay off what we owe now and minimize additional loans we are going to take. Customs is in a very good position, if they are able to block all perceived leakages, they should be able to generate a significant amount of income that will enable Nigeria to get out of debt, at least partially, ” he said.

He also acknowledged the existence of concessions for specific sectors, like agriculture, but emphasized these incentives should be transparent and demonstrably benefit the national economy.

While acknowledging the high unemployment rate, Senator Jibrin clarified that the NCS can only employ a limited number of personnel based on operational needs.

He stated the committee’s goal to see the NCS surpass the already approved recruitment target of 1,600 new personnel.

The Comptroller General of the NCS, Adewale Adeniyi, while answering questions from the lawmakers revealed a proposal to seek government approval for a program allowing owners of smuggled vehicles to regularize their status by paying import duties.

This, he said, will be done after adequate publicity so that those who find themselves in such a situation can get their vehicles regularise through payment of import duties.

Adeniyi acknowledged the difficulties caused by the fluctuating exchange rate, stating that predictability would facilitate better planning and potentially ease import clearance processes.