Uche Usim, Abuja

The Comptroller-General of the Nigeria Customs Service (NCS), Hameed Ali on Tuesday disclosed that the 2020 revenue target set for the service by Federal Government stands at N1.679 trillion as encapsulated in the Medium-Term Expenditure Framework approved by the National Assembly.

Ali made the revelation in Abuja at the 2020 budget defence with House of Representatives Committee on Customs.

According to him, the figure consists N1.5 trillion for federation revenue, while non-federation stands at N178.62 billion.

When compared to the 2019 revenue target, the 2020 figure is higher by N741.43 billion (44.17%).

The Customs boss said the 2020 budget leverages on Information Communication Technology (ICT) tools as a major driver in achieving the target, which he said was totally captured by the e-Customs project in line with the dictates of the World Customs Organisation (WCO).

He said: “The Services strategy is anchored on computerization and other ICT tools for effective and efficient service delivery that guarantees robust revenue inflows to government coffers.

“The e-Customs project is a modernized electronic business system which enables the NCS to perform its statutory duty and security functions by efficient interconnection of all relevant trade ecosystem partners, agencies, regulators for effective trade facilitation and revenue generation.

“Secondly, with the introduction of biometric access modification with a definite drive towards strengthening the existing risk management structure, this development will reduce or eradicate the abuse and manipulation of system and thus increase revenue generation. The e-Customs is envisaged to automate excise and export platform which is aimed at enhancing revenue generation drive.

“The use of e-Customs project for border surveillance through artificial intelligence instrument monitoring the border areas will effectively reduce smuggling and invariably enhance revenue collection,” he explained.

Ali further noted that the planned installation of scanners under the e-Customs project at various key Customs formations was to further fast-track the clearing of goods and avoid port congestion.

He added that the use of e-commerce to address informal trade and electronic transactions will boost the revenue through electronic trade.

The Customs boss also revealed that has forwarded a proposal for downward review of vehicle tariff to the Finance Ministry for consideration so that Customs duty on imported vehicles remain 35%, while the levy be reduced from the current 35% to 5 or 10%.

According to him, the position, of approved, will encourage compliance and boost revenue because the 70% duty and levy is encouraging smuggling of vehicles.

Ali also disclosed that the Service was advocating for the reintroduction of import taxes on petroleum products.

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“The petroleum tax regime of 2004 before its suspension imposed N1.50k per litre of petroleum products. It is the considered opinion of the Service that this regime be reintroduced in line with international best practices as it’s currently operational in over 36 countries at an average of $2.24 per gallon.”

On the issue of porous border, Ali said Nigeria has about 4,070km of land frontiers, adding that in the dry season, the entire part of the north is usually accessible by road.

“That is why you see the motorcycle ferrying rice now and then as shown in some videos.

“That is why we want to leverage technology to deal with it. Mr President has already approved e-Customs. We’re working with the Air Force on Geo-spatial technology that will be deployed. Our officers are being trained by the Air Force. They will work to make the borders secure.

“Part of the ongoing drill is to develop an action plan and we’re making progress,” he added.

On the suspension of fuel supply to filling stations the border communities, the Customs boss said majority of those retail outlets located at the border are culprits of fuel diversion, especially petrol.

“They get approval to discharge the products legitimately in the day but at night, siphon it out. This has been going on for a long time.

“Now, we restricted supply to 20km before the border. Let’s monitor the outflow. We want to know where the outflow is coming from.  But we suspect these filling stations at the border are the conduit to siphon petrol and sell double the price to neighbouring countries. Petrol is sold N395/litre but they buy from Nigeria at less than N145/litre.

“With this border closure, it has jumped to N600/litre. Meaning we are the one subsidising petrol for neighbouring countries. So, marketers are making a kill. It’s attractive to take petrol out and sell there,” Ali said.

In his remarks at the meeting, the Chairman, House Committee on Customs, Yusuf Kila, hailed management of the service for surpassing its 2018 revenue target, expressing hopes that the same feat will be achieved this year.

He added that the committee totally welcomes the planned downward review of tariffs on imported vehicles, saying it will discourage Nigerian importers from routing their containers through neighbouring ports and then smuggle them into the country without paying duties.

The committee also supported Customs on the ongoing border sanitisation drill tagged ex-swift response, describing it as an antidote to the perennial scourge of smuggling that assumed intolerable heights in recent times.