‘How smuggling denies Nigerians benefits of subsidy removal’ 

With a revenue target of N5.079 trillion this year, the Nigeria Customs Service (NCS) has generated N1.34 trillion in the first quarter, while also conceding N318 billion to duty exemptions, waivers and concessions to companies in the same period under review. 

   
The agency also disclosed that between January and March this year, 478 seizures amounting to N1.9 trillion were made by its operatives.  Comptroller General (CG) of NCS), Adewale Adeniyi, disclosed this, yesterday, while presenting the quarterly report of the agency the House of Representatives Committee on Finance, which was performing quarterly monitoring exercise on revenue-generating agencies.
  
In the report presented to the lawmakers China, United States of America, India and The Netherlands top the list of countries Nigerians import goods and products from, while The Netherlands, Spain, France and India top the list of countries of export. 
  
During the meeting, the issue of exemptions and waivers granted to importers and manufacturers came to the fore again, as deputy chairman of the committee, Saidu Abdullahi, disclosed that Customs would have generated more income for Nigeria’s consolidated revenue fund in the first quarter without the waivers and concession arrangements.
  
With a projected revenue target of N1.269 billion for the first quarter of 2024, Adeniyi disclosed that the agency surpassed the target by N77 billion.  
  
“The monthly expected average revenue target stood at N423,255,822,173.79. The collection for January recorded a shortfall of 7.66 per cent on the target, while February denoted an excess of 6.37 per cent. March equally represented a positive variance of 19.71 per cent of its respective monthly estimates.
  
“With the total projected revenue of N1,269,767,466,521.38 in the first quarter of 2024, N1,347,705,251,658.31 was collected, which recorded a significant improvement of 6.14 per cent higher than the periodic target,” he said.  
  
Noting that the service performed remarkably well in terms of revenue generation within the first quarter with 6.14 per cent above the periodic target, he said Customs contribution to the yearly revenue target as of March 31, 2024, stood at 26.53 per cent, adding that the trade balance was positive at an advantage of 84.58 per cent 
  
The Customs boss also raised concern about the smuggling of Premium Motor Spirit (PMS) meant for the Nigerian market to neighbouring countries.  According to him, cross-border smugglers divert PMS to neighbouring countries, denying Nigerians the opportunity to enjoy the benefits of subsidy removal. 
   
President Bola Tinubu announced a halt in fuel subsidy, last year, following complaints that PMS was being smuggled out of Nigeria massively due to its low price in the country, as well as the financial burden of subsidy on the government.
  
Adeniyi explained, “In terms of fuel, the smuggling of PMS is not allowing us to reap the full benefits of removal of fuel subsidy and we know how critical this is to the government. Our study has shown that there are places in our country where the smuggling of PMS is left unchecked. I am happy to announce that in response to this, we have come up with special operations in the last few weeks targeting the smuggling of PMS. In the next few days, I will be briefing Nigerians on the initial results of these operations, which will help us to know the amount we are losing to the smuggling of PMS.”
  
He said the agency was not responsible for granting exemptions and concessions to companies, as it was sometimes the President’s prerogative to determine the beneficiaries. 
  
He revealed that the volume of cargo throughput reduced compared to the previous year, blaming the volatility of the exchange rate for the development.  Commending NCS for surpassing its quarterly revenue target, Deputy Chairman of the Committee, Saudi Abdullahi, urged the service to generate more revenue. 
  
The lawmaker said, “I must encourage you to do more. I can see a man that knows his worth. But you can do better. You said your target is N5 trillion; you can make it six trillion and the whole country will celebrate you.”