The Nigerian Senate has granted approval for a revenue target of N5.079 trillion and a budget of N706.4 billion for the Nigeria Customs Service (NCS) in the fiscal year 2024. The approval came after the presentation of a report by Jibrin Isah, the Committee Chairman on Customs, Excise, and Tariff, during the plenary session last Thursday.
According to Isah, the breakdown of the budget includes personnel costs at N225.99 billion and overhead costs at N111.76 billion, constituting 31.99% and 15.82% of the budget, respectively. Ongoing capital projects are set at N148.42 billion, while new projects, representing 52.19% of the budget, have been allocated N220.26 billion.
Isah emphasized the importance of timely implementation of the 2024 fiscal policy, stating that it would enable the Nigeria Customs Service to commence the execution of its plans promptly. He highlighted the strategy of providing a flexible window to curb illegally imported vehicles and ensure the proper collection of import duties and penalty charges.
“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,” he explained.
Isah also noted that mechanisms such as systems audit, real-time auditing, post-clearance auditing, the institution of a revenue recovery committee, and other intelligence gathering tools would contribute to an intensive revenue recovery drive. He highlighted that the revised penalties and charges in the new Nigeria Customs Service Act, 2023, would enhance revenue generation for the service.
In terms of anti-smuggling and cargo tracking, Isah stated that the Nigeria Customs Service anticipates collaboration with the Shippers Council and other relevant government agencies to decongest and achieve efficient port operations, ultimately leading to increased revenue.
“As provided within the confines of Customs law, all required operational guides will be utilized to ensure that illicit trade that creates a sphere for revenue leakages, as well as economic sabotage, are reduced to the barest minimum,” he concluded.
