…Demands explanation for humongous revenue collection amidst import dip
The Association of Registered Freight Forwarders Nigeria, AREFFN has again faulted the practice by the federal government where it sets revenue target for the Nigeria Customs Service, NCS on a yearly basis even as it seeks to know what is giving rise to the humongous revenue collection as declared by different Customs commands despite dip in importation.
The National Secretary of the association, Ichie Frank Obiekezie who made these observations in a chat with our correspondent in Lagos recently, reiterated that customs was not established to generate revenue for the government but to engage in anti-smuggling operations and to regulate the entry of offensive goods.
Obiekezie regretted that the major target of the Nigeria Customs now as directed by the government was to generate revenue which according to him had sparked off unhealthy competition among customs commands over revenue collection. “It’s like the CACs compete among themselves over who will generate more. It’s now a benchmark for promotion and postings to juicy commands”, he added.
“I was going through some documents and looking at what customs declared for last year, for instance, Murtala Mohammed International Airport command said that it made 94% increase in revenue collected in 2024 over the year 2023 having raised N11.2 billion. Apapa command collected over N2 trillion and so on.
“But the question is, what is giving rise to this humongous revenue collection? If government likes, let them give them N30 trillion, it is Nigerians that will suffer it. The more you increase the official revenue due to the government, the more the operators increase their own unofficial revenue. There’s no regulation, no control, officers do what they like, they exercise a lot discretion.
“What is the basis of asking customs to bring N12 trillion? The port system is like a cesspool of corruption, everybody, including us the freight forwarders, everybody’s aim is how to cut corners and make the greatest amount of money out of the port, from top to bottom.
“For example, this money that customs is raising, have they explained to us what is driving this magnitude of revenue collection? Because we the operators know that jobs are not coming because most importers have withdrawn from the business. How much are you going to deploy to bring in a container to Nigeria, clear it and take it to wherever you are taking it to with multiplicity of security agencies?”, he queried.
The AREFFN Scribe who frowned at the recent introduction of the 4% Free On Board, FOB levy by the Nigeria Customs Service, NCS wondered if the Service was not supposed to notify the port economic regulator, the Nigerian Shippers’ Council, NSC before taking such a step which he believed was bound to ruffle feathers among the trading community.
“If at the end of the day this thing (4% FOB levy) is found inappropriate, will there be consequences? So, why won’t they introduce it on a later date? If you now give us floating exchange rate with which to clear our consignment at the port, now, you are surreptitiously Increasing charges because already, with this new exchange rate, almost every charge has been affected. Now you are increasing the percentage without discussion.
“So, the introduction of the 4% FOB, because they did not tell us that they are replacing the 1% CISS with it, the 1% may still resurface. There’s nothing they cannot do. I am aware that government pays customs 7% of what they collect, the Inspection agencies have been replaced by Customs and now instead of that 1%, so will it now be more expensive for us now that our indigenous people are doing the job than when foreigners were doing it? So, we have a problem in this country”, he stated.
Photo: Ichie Frank Obiekezie, National Secretary, AREFFN.
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