Home » Customs Rake in Billions from South-West, Reps Reveal

Customs Rake in Billions from South-West, Reps Reveal

How the Nigeria Customs Service generates most of its revenue from the region

by Victor Adetimilehin


The House of Representatives Committee on Customs and Excise has disclosed that the Nigeria Customs Service (NCS) makes most of its income from the South-West region of the country.


The chairman of the committee, Leke Abejide, made this assertion on Wednesday at the inauguration of committee members in Abuja. He said, “The NCS is a big institution with a lot of commands, which are divided into Zones A, B, and C, with the southwest falling into the Zone A category.” He explained that the region has many seaports in Lagos, which account for most of the revenue collection.


According to a report by Punch, he stressed the need to monitor the revenue and remittances of the Customs to boost the income of the Federal Government.


“We will work tirelessly to enhance trade facilitation policies, modernise Customs procedures, and foster a conducive environment for economic growth and development,” he said.


New Act, new financing model

Abejide said under the new Act, the NCS now had access to increased revenue via a new financing model of four per cent FOB, thus enabling it to operate more effectively and efficiently.


“The new Act also introduces a robust e-commerce system, aligning the NCS with global digital trends and promoting rapid revenue generation and ease of doing business,” he said.


He said another notable milestone of the Act was the establishment of a clear leadership structure for the Nigeria Customs Service. He listed the seven areas of focus of the committee to include oversight on the NCS’s implementation of the new Act, revenue collection, and remittance.


Others were the cost of collection, export processing zones, training institutions, customs and excise laws, and budget estimates.


Revenue collection and remittance

It was stated that the committee would closely scrutinize the NCS revenue collection and remittance processes to ensure that all Customs duties and levies are promptly accounted for and remitted into the Federation Account.


“We will closely monitor the NCS progress in implementing the Act, ensuring that it adheres to the principles of transparency, accountability, and efficiency,” he said. The committee would also review the NCS cost of collection to ensure that it is reasonable and justifiable.


The new Act introduces a more streamlined and revenue-enhancing approach. Instead of the previously imposed seven per cent surcharge on duty payable, the Act now mandates a four per cent Free-on-Board charge. “This change ensures that waivers granted do not adversely impact the revenue collection targets of the NCS, leading to a projected threefold increase in income compared to the current levels,” Abejide said.


Abejide expressed optimism that the NCS would continue to perform its duties with professionalism and integrity, and contribute to the economic development of the country.


You may also like

logo white

Born from an unwavering commitment to the nation’s progress, we stand as an emblem of independent journalism dedicated to serving the interests of progressive Nigerians from every corner of our diverse and vibrant country.

© 2024 The Nigerian Patriot. All Rights Reserved.

Social Media Auto Publish Powered By : XYZScripts.com