…Says N12 trillion revenue target for Customs in 2025 quite ambitious
The Sea Empowerment and Research Centre, SEREC has questioned the powers of the lawmakers, in this case, the National Assembly to give or approve a yearly revenue target for the revenue generating agencies of the government.
SEREC, in a statement signed by its Head of Research, Dr. Eugene Nweke and made available to newsmen, disclosed that it was yet to strike a balance on whose duty it was to give or approve a yearly revenue targets to the revenue generating agencies of the government.
It posited that while it was understandable that the agencies had an obligation to defend their yearly budgets before the lawmakers, it was not constitutionally clear whether it falls under the purview of the lawmakers to also give yearly revenue targets to the revenue agencies.
According to SEREC, there was a need for a better assigning of roles, while seeking a clarification on who between the Executive arm and the legislative arm of government was the right authority to give yearly revenue targets to the NCS.
The Centre, however, opined that, yearly revenue targets were not just mere figures to be given or pronounced under the euphoria of a prevailing excitements, rather, revenue targets were given or pronounced after so many variables and indices duly putting in the right perspectives.
“Such variables or indices may include, weighing the impact of the previous year’s revenue generated on the trading environment, the economy in real time, effects of inflation rate analysis, a performance graphs for local production inhibited by imported products, the direct impact to the lives of the citizens in general, with regards to consumers price index and poverty level indicators, etc.
“Take note that, the ever-increasing foreign exchange regime and harsh trading environment are additional hurdles that could hinder the NCS progress.
“It’s worth noting that, ahead of schedule, the NCS did achieve a significant milestone in 2024, generating a revenue of N5.07 trillion and at dying minute, reported closing it up to N6.105 trillion.
“However, this milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders as well as improved processes and modernized systems.
“To reach the new target, they would need to significantly scale up their efforts and find ways to mitigate the challenges posed by the current economic environment, in addition to blocking leakages via the deployment of modern technologies”, SEREC said.
It therefore, warned that the aggressive pursuit of this revenue target in the year 2025 could have a negative impact on the trade environment and the economy as a whole adding that it may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially, where compliant level was at single digit increase.
“Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of customs regulations.
“Overall, while the NCS’s revenue target is ambitious, it’s essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run”, the Centre insisted.
It thereafter reminded the government that the NCS actions and inactions touched every sphere of the socio economic life of the citizens, whom it said were already down, poverty wise, with inflation rate hitting at 34.8% in December 2024.
SEREC, therefore, called on the Honourable Minister of Finance and the Coordinating Minister of the Economy, who doubles as the Chairman, Board of the Nigeria Customs Service to be deliberate and real to his ministerial obligation to the nation, in the context of the matter under consideration.
It will be recalled that the National Assembly, on Tuesday, increased the 2025 revenue target for the Nigeria Customs Service, NCS from the proposed N6.5 trillion to a whooping N12 trillion.
This decision was made when the Chief Executives of some federal agencies appeared before the National Assembly Joint Committee on Finance for the defence of their 2024 budget and revenue projections for the 2025 fiscal year.
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