The Sea Empowerment and Research Center (SEREC) has expressed concern over the Nigeria Customs Service’s revenue target of ₦12 trillion for 2025 recently proposed by a joint Committee of the National Assembly describing the figure as unhealthy for the economy
This was disclosed in a press release issued in Lagos by the body’s Head of Research,Fwdr Eugene Nweke
According to Nweke, the drive for such figure is capable of exacerbating the suffering of ordinary Nigerians, increase inflation and put traders, particularly importers and exporters in difficult situation
SEREC viewed the target as overly ambitious, given the prevailing economic conditions marked by uncertainty in trade policies, declining imports and exports, and a challenging business environment.
Nweke also stressed that the NCS’s revenue target for 2025 is more than double its 2024 target of ₦5.07 trillion, which was exceeded with a total revenue collection of ₦6.105 trillion noting that while the achievement is commendable, the aggressive pursuit of the 2025 target could have negative consequences, including increased scrutiny and harassment of importers and exporters.
While advising the government to adopt a more balanced approach, and taking into account the current economic realities and the need for trade facilitation and enforcement, he called on the Coordinating Minister of Finance and Budgeting to be deliberate and realistic in his ministerial obligations, considering the impact of the NCS’s actions on the socio-economic life of citizens.
” The Sea Empowerment and Research Center – SEREC is yet to strike a balance as to whose duty it is to give or approve a yearly revenue targets to the revenue generating agencies of the government. Without mincing words SEREC wish to candidly posit that, while it is understandable that the agencies has an obligation to defend its yearly budgets before the lawmakers, it is not constitutionally clear whether it falls under the purview of the lawmakers to also give yearly revenue targets to the revenue agencies.
“The the Nigeria Customs Service’s revenue target of ₦12trillion for 2025 is quite ambitious and a stretch, considering the current state of the economy. Especially, so in the face of heightened trade policies uncertainties, leading to dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes, etc. Indeed, it is challenging to really project how the NCS intends to achieve this target.
” The SEREC wish to strongly opin that, yearly revenue targets are not just mere figures to be given or pronounced under the euphoria of a prevailing excitements, rather, revenue targets are 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 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.
” We wish to offer a word of advice to the government , by reminding and calling its understanding to the effect that, the NCS actions and inactions touches every sphere of our socio economic life of the citizens, who are already down, poverty wise, with inflation rate hitting at 34.8% in December, 2024.
” We therefore call on the Hon Coordinating Minister Finance and Budgeting, who doubles as the Chairman Board of Customs to be deliberate and real to his ministerial obligation to the nation, in the context of the matter under consideration.”
The National Assembly through its joint committee on Finance had proposed revenue projections for Nigeria Customs Service from 6.5trillion naira to 12trillion naira in the 2025 fiscal year.
It also increased that of the Nigeria Deposit Insurance Corporation (NDIC) from 163.3billion naira to 180 billion naira.
The two separate but similar decisions of the joint committees were taken when Chief Executives of the federal government owned agencies appeared before it for defence of 2024 budget implementation and revenue projections for 2025 fiscal year.
First to make presentation on revenue projections for the 2025 fiscal year, was the Comptroller – General of Nigeria Customs Service, Bashir Adewale Adeniyi who said that having generated N6.1trillion in 2024, Customs would comfortably generate N6.5trilliin in 2025.
But the Chairmen of the joint committees Senator Sani Musa and James Faleke in their separate remarks, told the Customs CG, that the 2025 projected revenue should be far above N6 5trillion.
Senator Sani Musa in particular, said 10 trillion naira should be the minimum revenue generation target for customs in 2025 which was however increased to N12trillion based on suggestions made to that effect by some other members of the committee.
“Based on aggregate of opinions expressed by members of this committee, the Comptroller – General of Customs, should aim at generating N12trillion revenue for Nigeria in 2025 which almost doubles the N6 5trillion proposed by Customs itself “, he said.
Similar revenue generation projection was made for NDIC when its Managing Director and Chief Executive Officer, Mallam Bello Hassan, made presentation on defence of 2024 budget and revenue projection for 2025.
