Adeniyi: Unstable Policies, Immunity Abuse Hampering Customs Revenue Generation Drive

Raheem Akingbolu

The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi has identified dwindling oil revenue, insecurity, abuse of privileges, immunity for high profile Nigerians and closure of land borders as some of the attendant challenges facing the operations of the service, leading to occasional decline in revenue generation into federation account.  

In a presentation at the just concluded 2023 retreat, organised for the members of the Federation Account Allocation Committee (FAAC), held in Asaba, Delta State, Adeniyi, who reviewed the activities of the NCS between January 2013 to December, 2022, said the service sustained a progressive trend in its performance for the period under review but confronted challenges in the area of revenue generation.

Citing example of the impact of some of the challenges, he highlighted how closure of land borders in 2015 led to a drastic reduction in imports, with consecutive drop in the Service’s generated revenue from N572,623,238,085.91 in 2014 to N542,147,557,911.17 in 2015.

He also disclosed that unstable oil prices in the international market has inversely affected the Nigeria government’s ability to finance its yearly budgets without difficulty.

The development, he said, aroused serious concerns for economic transformation from a monolithic economy characterized by over dependence on revenues from the oil and gas sector, to diversification and development of the non-oil economic sector, which he said has significantly impacted economic growth and national development thus far.

“By implication, the service sustained a progressive trend in its performance for the period under review (2013 -2022). The shortfall in 2015 was due to closure of land borders by the then new administration of Muhammadu Buhari, ”Adeniyi said.

Adeniyi explained that security challenges posed threats capable of hindering revenue collection within the affected area.

He made reference to the eight years of Boko Haram insurgency in the North East, which he said, crippled economic activities in the geo-political zone.

He said: “Most times, unstable government policies tend to affect the Services revenue generation drive. Also, rigid foreign exchange policies makes it difficult for importers to access foreign exchange {forex} or policies restricting some items from accessing forex affects volume of imports negatively. The suspension of policy on carbonated drinks, telecommunication services, Single-Use Plastics. The introduction of chapter 99 has enabled many traders take their goods at low tariff rates.”

Another challenge he laid emphasis on, is the abuse of privileges and immunities by public office holders.

According to him, it is difficult for NCS Officers to assess high government and public officials traveling into the country, which in turn hinder revenue generation. 

To surmount the various challenges hindering smooth operation of the Service with respect to revenue generation, Adeniyi said it was germane for the Nigerian government to provide every necessary support needed by the service to attain its organisational goals and objectives.