2025: Freight Forwarding Group Faults Senate Committee on N12trillion Revenue Target for Customs
Container terminal at Apapa...
By Francis Ugwoke
The Sea Empowerment and Research Center – SEREC, a freight forwarding and research group, has faulted the recent revenue target given to the Nigeria Customs Service (NCS) by the Senate Committee on Finance.
The Group in a statement signed by the Secretary, Dr. Eugene Nweke, questioned whose responsibility it is to give annual revenue target to the Customs between the Ministry of Finance and the National Assembly.
Besides, the Group described the revenue target as quite ambitious and a stretch, considering the current state of the economy.
The statement added that this was even so considering the “ heightened trade policies uncertainties, leading to dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes”.
Nweke said, “ Indeed, it is challenging to really project how the NCS intends to achieve this target.
The statement referred the Senate Committee to the “ever-increasing foreign exchange regime and harsh trading environment are additional hurdles that could hinder the NCS progress”.
Part of the statement reads: “Wherefore, SEREC is of the view that there is need for a better assigning of role in this regards, hence, it seeks a clarification as to between the Executive arm and the legislative arm who is the right authority to give yearly revenue targets to the NCS?.
“The SEREC is of the strong opinion 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.
“It’s worth noting that ahead of schedule, the NCS did achieve a significant milestone in 2024, generating a revenue of ₦5.07trillion and at dying minute reported as closing it up to ₦6.
105trillion.
“ However, this milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders, as well as improved processes and modernized systems.
“To reach the new target, they would need to significantly scale up their efforts and find ways to mitigate the challenges posed by the current economic environment, in addition to blocking leakages via the deployment of modern technologies.
“Obviously, the aggressive pursuit of this revenue target in the year 2025 could have a negative impact on the trade environment and the economy as a whole. It may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially where compliant level is at single digit increase.
“Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of customs regulations.
“Overall, while the NCS’s revenue target is ambitious, it’s essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run.
“In concluding, the SEREC 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.
“Finally, the SEREC 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 Sea Empowerment and Research Center – SEREC, a freight forwarding and research group, has faulted the recent revenue target given to the Nigeria Customs Service (NCS) by the Senate Committee on Finance.
The Group in a statement signed by the Secretary, Dr. Eugene Nweke, questioned whose responsibility it is to give annual revenue target to the Customs between the Ministry of Finance and the National Assembly.
Besides, the Group described the revenue target as quite ambitious and a stretch, considering the current state of the economy.
The statement added that this was even so considering the “ heightened trade policies uncertainties, leading to dwindling imports and exports activities, low ship calls to ports, and lower cargo throughputs impacting on imports volumes”.
Nweke said, “ Indeed, it is challenging to really project how the NCS intends to achieve this target.
The statement referred the Senate Committee to the “ever-increasing foreign exchange regime and harsh trading environment are additional hurdles that could hinder the NCS progress”.
Part of the statement reads: “Wherefore, SEREC is of the view that there is need for a better assigning of role in this regards, hence, it seeks a clarification as to between the Executive arm and the legislative arm who is the right authority to give yearly revenue targets to the NCS?.
“The SEREC is of the strong opinion 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.
“It’s worth noting that ahead of schedule, the NCS did achieve a significant milestone in 2024, generating a revenue of ₦5.07trillion and at dying minute reported as closing it up to ₦6.
105trillion.
“ However, this milestone was largely due to the NCS strategic engagements and collaborative efforts with stakeholders, as well as improved processes and modernized systems.
“To reach the new target, they would need to significantly scale up their efforts and find ways to mitigate the challenges posed by the current economic environment, in addition to blocking leakages via the deployment of modern technologies.
“Obviously, the aggressive pursuit of this revenue target in the year 2025 could have a negative impact on the trade environment and the economy as a whole. It may lead to increased scrutiny and harassment of importers and exporters, which could further discourage trade and investment, especially where compliant level is at single digit increase.
“Additionally, the focus on revenue generation could divert attention away from other important aspects of customs operations, such as trade facilitation and enforcement of customs regulations.
“Overall, while the NCS’s revenue target is ambitious, it’s essential to consider the potential consequences of aggressively pursuing it. A more balanced approach that takes into account the current economic realities and the need for trade facilitation and enforcement would be more effective in the long run.
“In concluding, the SEREC 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.
“Finally, the SEREC 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”.
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