… appointment of Customs CG from service becomes compulsory

…new law improves revenue generation, checkmates importation of illicit arms

…as Reps pass N369 billion Customs 2022 budget

By Levinus Nwabughiogu-Abuja

House of Representatives has repealed Customs and Excise Management Act. This is coming 63 years after the former law has been in operation.

The new law was made possible by the approval of the report of the House Committee on Customs and Excise on the act earlier considered at the Committee of the Whole.

If signed into law by President Muhammadu Buhari, it will make the appointment of the Comptroller General of Customs within the Service compulsory.

Speaking on the synopsis of the report the sponsor of the Bill, and chairman House Committee on Customs and Excise, Hon. Leke Abejide (ADC, Kogi) said the extant law was no more effective and it had failed to address the current realities on the ground.

He said: “The passage of this Bill is a step in the right direction, especially in view of the fact that the Bill is the first major reform in the Nigeria Customs Service (NCS) Legal Framework in 63 years. The old Act has become obsolete in today’s competitive global world and also, in effective operations of the NCS.

“A review of the Act seeks to reposition the NCS for improved efficiency and service delivery. Full automation of the NCS with modern reality will facilitate trade, improve revenue generation and more importantly expose illegal importation of arms and ammunition into the country. All these would be made possible when this Bill becomes an Act”.

He added that Bill it will enable the “collation of all Customs and Excise legislations into a single compendium of Customs & Excise Act to facilitate easy reference and easy knowledge driven Customs and Excise policies.”

The lawmaker also stated that it will make the Nigeria Customs Service financially stable.

“This Bill when it becomes an Act will position Nigeria Customs Service to be financially stable and this will enable NCS to recruit the required number of Officers they need to man our porous border stations. The Nigeria Customs Service currently have 15,349 Officers instead of 30,000 Officers needed for the Service to function optimally.

“The current 7% cost of collection from the Duties payment is not enough to pay salaries of officers, not to talk of improving the infrastructures. For this reason, this Bill provides for funding system based on 4% FOB, according to international best practice, to address funding problems and to reposition the service for improved efficiency and service delivery, as such 7% cost of collection shall cease to exist the moment this Bill becomes Law.

“Making the Act more readable to the understanding of the principal stakeholders thereby deviating from hitherto strict legal drafting of the aged.

“Providing stiffer punishments for offenders to act as deterrence for serious economic crimes of Customs and Excise oriented thereby encouraging more revenue in the area of payment of fines.

“Provision of Legislative input into the appointment of Comptroller General of Customs similar to other organisations like Inspector General of Police, Nigeria Immigration Service, and the Service

Chiefs. This is based on the economic importance and security implications the occupier connotes to the national economic and security development.

“Provision of Arbitration Panel for the purpose of dispute resolution to reduce multiplicity of cases at the court of law relating to customs issues. A situation whereby dispute arose between the Nigeria Customs Service and a Stakeholder and is same NCS that will set up panel mainly comprising of Customs Officers to judge then justice is far from being served.

“Rejigging the Board of Customs and Excise Management with competent and result oriented technocrats for smooth and fast operation of its functions, putting round pegs in round holes.

“Provisions in line with international best practice with realistic deviation from the 1958 Act that has become obsolete in injecting combative approach to revenue and trade facilitation.

“Boosting the morale of Customs Officers with incentives introduced to carry them along in the scheme of things from the Comptroller General down to the last employee of the Service in line with revenue generation institutions and service delivery mechanisms.

“Introduction of new Excise collectable revenue avenues in line with the recently enacted Finance Act 2021 for the smooth operation. The collection of Excise Duties on all carbonated drinks now captured in this Bill for the Nigeria Customs Service to have adequate legal backing to function in this area.

“The aforesaid developments injected into this Bill is sufficient to implode economic development, facilitation of trade and greater revenue generation in tandem with the goal and target given to the Nigeria Customs Service in view of fiscal independence and autonomy our economy is yearning for.

“The most innovative inclusion into this Bill is the objectives of eradicating problems of corruption, fraud and malpractices together with inefficiencies and ineffectiveness in operation of the Service, which have hindered the desire to contribute maximally to the economic development of the nation.

“This Bill is in tune with ICT development which is going to give the Service the ICT demand it requires for its operations in line with international best practice. This would ensure a model that can think a thousand times faster and more efficiently than humans do”, Abejide explained.

Considering and voting of over 200, the passed the bill for the third reading.

In a related development, the House at plenary also approved the total sum of N369.136 billion budget for the Nigeria Customs Service for the 2022 financial year.

Of the amount, N108.853 billion was earmarked for personnel cost; N45,896 billion was for overhead cost and N214.294 billion was for capital projects of the Service.

The approval was sequel to the consideration and adoption of the report of the Committee on Customs and Excise on the issue from the Statutory Revenue Fund of the Nigeria Customs Service by the Committee of Supply on Tuesday.

A report by the Chairman of the Committee on Customs and Excise, Hon. Leke Abejide said that approved budget was premised on the Medium-Term Expenditure Framework (MTEF).

Seven percent cost of collection, amounting to N151.841 billion, being the projected revenue available to the Service was approved in the budget as well as two percent Value Added Tax (VAT) share of N14.939 billion.

The report also stated: “The 60% share of the comprehensive Import Supervision Scheme (CISS) of   N60.121 billion only for the 2022 intervention fund for the Nigeria Customs Service; retained income of N114.385 billion only; Share of Excess Target (in 2021) of N27.848 billion only.”

The report also asked the Service to use N27.848 billion surplus for the repairs of 13 scanners prior to the commencement of the proposed E-Customs to enhance their performance at the ports.

“The Nigeria Customs Service should make substantial provision for Corporate Social Responsibility so that communities where Nigeria Customs operates and people that work with Nigeria Customs Service could have a sense of belonging or take ownership of the Agency.

“The information required and assistance to tackle smugglers would be provided by the people easily but as it is now the NCS is seen as an outcast by these communities because they believe Customs only want to benefit from their domain at the expense of their welfare.

“The Nigeria Army does much more Corporate Social Responsibility for the general public and their hosts, so also, other Revenue Generating Agencies; that could be the reason for less reported acrimony and attacks against them by their host communities unlike customs”, the report added.