Senate frowns at Customs N257bn budget

Tunde Opalana, Abuja

Questions were asked on the amount earmarked for certain items under overhead and capital projects in the 2021 budget of the Nigerian Customs Service at the presentation and consideration of a report of the Senate Committee on Customs, Excise, and Tariffs on Wednesday.

Committee chairman, Senator Francis Alimikhena (Edo North) made frantic efforts to defend the Customs appropriation following questions from his colleagues.
The President of the Senate was helpless in challenging Senator Alimikhena and members of his committee to upscale their legislative oversight function on the frontline revenues generating agency. 

Senator Bala Ibn N’allah (APC Kebbi) challenged the committee for not querying the justification of the Customs in wanting to spend N200m on aircraft maintenance and N100m on fueling the aircraft.

N’allah as well raised the issue of N180m earmarked for cleaning and fumigation.
The senator asked  “what are they fumigating” and went ahead to challenge the chairman to explain why that huge amount was budgeted. 

“Your explanation will give us the comfort that we need”, he concluded.
Senator Sam Egwu (Ebonyi North) queried the allocation of a whopping N2b for welfare packages and retirement incentives. 

He said “Mr. Chairman,  I have never heard such before, being seen for the first time, please can you explain that?.

In answering the question, the committee chairman, Senator Alimikhena said the total amount of N2b is for all ranks and not for one person, all the officers of the agency.

The chairman also lamented that the agency defaulted in total implementation of its budget which is regrettable.

Irked by the unsatisfactory defence of the figures, the Senate President, Ahmad Lawan said “I’m sure you have heard so many observations regarding the report, and of course the way the budget of Nigerian Customs is implemented. The idea is to alert you as a committee to step up your activities with respect to that agency of government.

“Well, Chairman I think you need to upscale your oversight on the Customs because this narrative that they will keep the money they will not do budget implementation is as a result of insufficient oversight.

“So,  we need to know this kind of things in good time, that you report back to the Senate on what is happening and you also advise them on what is appropriate and legal as far as the implementation of the budget is concerned. We are not supposed to be hearing this now, so increase your oversight.

“Make sure that the budget is properly implemented, not at the end of the year but the entire spread of one year. Ensure that this is what goes on henceforth”.
Some of the allocations include; N1.6 billion for boreholes and other water facilities, N15.9 billion for motor vehicles, N81 million for shredding machines, and  N87 million for photocopiers.

Under overhead are allocations such as; N3 billion for local travels and transport, 
N100 million for internet access charges, N200 million aircraft maintenance, N250 million maintenance of motor vehicles/ transport equipment, and  N200 million maintenance of plant generators.

Allotted for other maintenance services include, N1.2 billion local training, N180 million cleaning and fumigation, N500 million legal services, N400 million motor fuel cost, N400 million plant and generators fuel cost, N100 million aircraft fuel cost, and N90 million refreshment, meals, and N1,570,769,000 for recruitment and appointment.

Expected revenue by the Customs for the 2021 fiscal year is  N1, 678, 715, 061, 014.

Giving a breakdown of the revenue framework, Alimikhena said the Committee increased the NCS revenue target from N1,465,345,719,428.00 (one trillion, four hundred and sixty-five billion, three hundred and forty-five million, seven hundred and nineteen thousand, four hundred and twenty-eight naira) to N1,678,715,061,014.00 (one trillion, six hundred and seventy-eight billion, seven hundred and fifteen million, sixty-one thousand and fourteen naira). 

According to the lawmaker, “in the 2021 fiscal year, NCS revenue target was pegged at N1.465 trillion comprising of N1.267 trillion for Federation Account and N197.996 billion for Non-Federation Account, respectively. However, the Senate Committee deemed this target to be inadequate, while taking cognizance of the recently assented Finance Act, 2021.”

He explained that other factors such as the expansion of excisable items, excise duties of carbonated drinks; tariff review on vehicles; re-opening of the border; and projected increase on the collectible duty of imports informed the upward review of revenue target for the NCS.