Senate Considers Raising Customs Revenue Target to Save Nigeria from Debt Crisis

Confidence UbaniFebruary 6, 20242 Mins read616

The Senate has informed the Nigeria Customs Service that the agency’s 2024 revenue target will undergo an upward revision in the latter part of the year.

This change is reportedly aimed at preventing additional borrowing for the country.

Senator Isah Jibrin, Chairman of the Senate Committee on Customs, delivered this message during a meeting with Adewale Adeniyi, the Comptroller General of the Nigeria Customs Service, and senior officials of the revenue agency

According to Adeniyi, the service generated N3.21 trillion in 2023, falling short of the targeted N3.67 trillion due to various factors. The current target stands at N5.079 trillion for the fiscal year, but this is now subject to an upward review.

In the meeting on Monday, Senator Isah Jibrin emphasized the crucial role of Customs in generating internal revenue to alleviate the nation’s debt burden.

He said; “First of all, Nigeria is saddled with a lot of debt obligations and we need to wriggle ourselves out of that trap and one of the ways to do that is internally generated revenue. Customs is one of the major providers of internally generated revenue and as it is today, we expect them to play one of the major roles in this drive to reduce our debt burden.”

“We need to pay off what we are owing now and minimise additional loans we are going to take. Customs is in a very good position, if they are able to block all perceived leakages, they should be able to generate significant amount of income that will enable Nigeria get out of debt, at least partially.”

Increasing custom revenue target partially implies further raising import rate, which will impede importation businesses and prove to be counterproductive.

A Netizen captures this by saying: “Just so you know, the more revenue customs makes, the higher the inflation rate in Nigeria.

That customs revenue they’re pumping, it’s pumping the price of every single thing you’re buying. So yes, IGR it is.”

Responding to the Senate, Adeniyi sought government approval for Customs to grant waivers to individuals who own smuggled vehicles. These individuals would, then, be given a defined timeframe rectify to their Customs duty payments.

He also underscored the importance of stabilizing the Naira exchange rate, and advocated for a spot rate agreement for more predictable fiscal planning.