Home News Customs targets N3.019trn in 2022, to spend N369.14bn — CG tells Senate 

Customs targets N3.019trn in 2022, to spend N369.14bn — CG tells Senate 

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THE Comptroller General of Nigeria Customs Service, NCS, Col. Hameed Ibrahim Ali, retd told the Senate yesterday that it has targeted a total of N3.019 to be raked into the Federation Account this year, 2022.

According to Customs, the target set consists of N2.019 trillion for Federation; N253.23 billion for Non- Federation and N746.96 Billion for import Value Added Tax, VAT.

Recall that the Revenue Generating Agency had targeted a total of N1.465 trillion to be raked into the Federation account last year, 2021.

Speaking yesterday in Abuja when he appeared before the Senator Francis Alimikhena, All Progressives Congress, APC, Edo North led Senate Committee on Customs, Excise and Tariff to present and defend the 2022 Budget of Customs Service, the NCS Boss said that when compared with the 2021 revenue target, the 2022 revenue target is higher by N965.42 billion or 31.98 per cent.

According to Ibrahim Ali, the Service has proposed a budget expenditure of N369.14 billion for the 2022 fiscal year and would be sourced from 7% Cost of Collection for 2022 which is N151.84 billion; 60% CISS which is N60.12 billion; 2% VAT share of NCS is N14 94 billion; Retained Income is N114.39 billion and Share of Excess Target( 2021) is N27.85billion.

Recall that the NCS proposed a budget expenditure of N242.45 billion for the 2021 fiscal year.

Giving a breakdown, Ali explained that the expected income will be utilized as follows: Personnel cost, N108.85 billion, representing 29.49%; Overhead Cost is N45.89 Billion, representing 12.43%; Capital Cost, N214.30 billion, representing 58.08%, with a grand total of N369.04 billion, representing 100.00%.

He gave the breakdown of the Capital Expenditure budget of N214 30 billion aa as follows: Proposed Works 2022 is N63.35 billion; Proposed Supplies 2022 is N66 23billion; Ongoing Works 2021 is N51.55 billion; Ongoing Supplies 2021 is N6.63 billion; Ongoing Works 2021 is N16.67 billion; Ongoing Supplies is N5.94 billion and other liabilities is N3.63 billion.

When asked if the targeted revenue could be pushed beyond N3.1 trillion, the NCS boss advised against what he described as over-ambitious targeting against the backdrop that the one set for 2022 was already on the high side in order not to cripple the economy.

Speaking earlier, Chairman of the Senate Committee on Customs, Excise and Tariff, Senator Alimikhena who took a swipe at the continued complaints of the non-functioning of Scanners, warned that this must be urgently addressed in order to enhance the revenue drive for the country, adding that national assets must not be allowed to waste away.

Alimikhena also urged the NCS boss to ensure the 2023 budget of the revenue Generating Agency gets to the National Assembly latest end of October 2022 in order to facilitate early passage before the end of December 2022, adding, “the Nigeria budget circle is January to December. Customs should key into this circle, late submission of the budget will no longer be entertained.

“The 2023 budget should reach the National Assembly latest end of October 2022 so as to facilitate early passage before the end of December 2022.

According to the Chairman, “The Committee commends the Comptroller General and his team for the aggressive revenue drive in exceeding their target in the 2021 budget year, in view of other mitigating factors such as bad Scanners and the Securities issues at the Ports, etc. This is necessitated the urgent need to repair the scanners to enhance the revenue drive for the country. National assets should not be allowed to waste away.

“It is our hope that the Senate Committee will work in collaboration with you to place the Nigeria Customs Service as number one revenue-generating Agency of the Federal Government. To this effect, the committee is working to repeal the Customs and Excise Management ACT Cap 45 Laws of the Federation of Nigeria. This Act when signed into Law will give the Customs Service the enabling environment to perform maximally.

“The ssue of who collects the $10 tariff on carbonated drinks etc is been looked into with a view to amending the Finance Act. 2021. Delay in amending it will not be advantageous to Nigeria Customs Service.

“Other generating sources should be looked into, such as seized cargoes that are all over the customs locations. When these cargoes are publicly auctioned, it will generate more revenue for the country. The Comptroller General is hereby advised to act on this promptly.

“Social responsibility is an act that adds to calmness in revenue drive in a hostile environment. The Comptroller General is to look into this possibility, especially the Border communities where smuggling is the other of the day.”

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