NASS mandates NCS to block leakages, ensure achieving N10.5 trn revenue in 2025

By Tom Okpe

The National Assembly Joint Committee on Finance, has unanimously mandated authorities of the Nigeria Customs Service, NCS, to block leakages, put up necessary stringent measures, to achieve its target of N10.5 trillion revenue, for the year 2025.

This was agreed upon, at the joint Committees of the Senate and the House of Representatives during the 2025 budget Defence and proposals at the National Assembly, Abuja.

The ultimatum was given to Chief Executive Officers of key revenue generating agencies including Chairman of Federal Inland Revenue Service, FIRS, Yemi Cardoso and Managing Directors of Nigerian Ports Authority, NPA and the Nigerian Maritime Administration and Safety Agency, NIMASA.

The lawmakers opposed the N6.5 trillion revenue projection presented for the year, harped on the need for the Service to ensure effective monitoring of its personnel, address issues bothering on under-declaration, among other sharp practices at the nation’s ports.

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In his address, Chairman, Senate Committee on Finance, Senator Sani Musa stated that the N10.5 trn new revenue target is achievable after due consideration of available information, obtained from the Budget Office of the Federation.and other parameters.

He also, noted that the Parliament will not hesitate to raise the revenue target to N12rn, if the issue of non-remittance of 80 percent ‘Operating Surplus’ as provided by the Fiscal Responsibility Act, 2007 is not addressed with Fiscal Responsibility Commission, FRC.

In his presentation, FRC Chairman, Victor Murako alleged that NCS which began to comply with provisions of the Act in 2015 to 2019, failed to remit the ‘Operating Surplus’ to the Consolidated Revenue Fund till date.

He said: “The Service is indebted to the tune of N8.6 billion as at 2019. The agreement reached after the intervention of the Public Accounts Committee last year was not honored by Nigeria Customs Service.”

While responding to the presentation, NCS Comptroller General, Adeniyi Adewale promised to work with the Legal Department to address the issue of operating surplus between one or two weeks.

On the question bothering on the revenues accruing to Nigerian Customs Service as raised by Chairman, House Committee on Finance, Rep James Faleke, the NCS Comptroller General disclosed that the Service collects 2 percent VAT, 7 percent collection while 4 percent FOB is yet to be implemented but, being worked out by the Ministry of Finance and office of Accountant General of the Federation, oAGF.

The lawmakers who spoke during the interactive session with Heads of key revenue generating agencies including the NCS and the Nigeria Deposit Insurance Commission, NDIC, decried failure of Heads of some Government revenue generating agencies to honour invitation and appear for 2025 budget defence.

In his remarks, the Committee Chairman, Senator Musa observed that President Bola Ahmed Tinubu, while presenting the 2025 budget to the joint session of the National Assembly, mandated Ministers and Heads of agencies to appear, and defend their respective budgets before the Assembly, with every sense of responsibility.

“But to our dismay, a lot of agencies have refused to honor our invitations to appear before us, for us to scrutinise their performances in 2024 and look at their 2025 projection, if justifiable.

“All these agencies have refused to honour the joint committee’s invitation. So by virtue of the constitutional powers that have been given to the joint Committees on Finance of both the Senate and the House of Representatives, we are giving the chief executives of these agencies 48 hours within which to appear before this joint Committee.

“Failure to do that, will attract the Committee’s recommendatiins to the Appropriation Committee to withhold any appropriation to these agencies.

“If these agencies are self funded, we will also request both the Minister of Finance and the Accountant General of the Federation to withhold their funding,” he said.

Also speaking, the Chairman, House Committee on Finance, Rep James Faleke, said the essence of the budget defence exercise was to boost revenue generation and cut down on borrowing.

“If these agencies refuse to appear before us, the needful will be done by the National Assembly.”