Nigeria’s Senate okays N1.678trn revenue target for NCS
Nigeria’s Senate has approved a total of N1.678 trillion revenue target for the Nigeria Customs Service (NCS) for the 2021 fiscal year.
It also at the plenary on Wednesday approved a total expenditure of N257 billion for the service, including retained earnings for its ongoing projects for the year as proposed by the Senate Committee on Customs Excise and Tariffs.
The approval followed the consideration and adoption of the report of the senate committee after the President of Senate, Ahmad Lawan, put it to voice vote.
Presenting the report, the Chairman of the committee, Sen.Francis Alimikhena (APC-Edo) said the NCS had proposed a revenue target of N1.46 trillion.
Alimikhena said the revenue target comprised N1.267 trillion for the Federation Account and N197.996 billion for non-Federation Account.
He said the committee however deemed the target inadequate, taking cognisance of the recently signed Finance Act 2021, and expansion of excisable items.
The committee chairman listed other excisable items as carbonated drinks in addition to tariff review on vehicles and re-opening of the border, among others.
Alimikhena added that aother reason for the increase in the target was the increase on the Central Bank of Nigeria official rate of the Naira to Dollar.
He said: “This means the collectable duty of every import will increase in naira term than when the rate was N381 to one dollar.
“All these will significantly increase the revenue target of the NCS in 2021 budget year.
“In view of the fore-going not captured in the Medium Term Expenditure Framework (MTEF 2020), the committee hereby increases the NCS revenue target from N1.46 trillion to N1.678 trillion.”
He said the cost of collection was pegged at 1. 7 per cent, while the Value Added Tax (VAT) was pegged at 2.2 per cent.
According to him, the proposed expenditure of N257 billion including retained earning for ongoing projects for the 2021 financial year was approved by the committee.
Before the approval Sens. Bala Ibn’Nala (APC-Kebbi) and Sam Egwu (PDP-Ebonyi )sought clarifications on the budgeted revenue of N180 million for funmigation and N2 billion provision as incentive for retiring officials.