Customs

Customs grants N2.3trn duty waivers in 2021, generates N1.34trn revenue

CGC, Ali

The Eyewitness reporter

The Nigerian Customs Service has given duty exceptions to importers to the tune of N2.3trillion in 2021, a 194.65 percent increase from the N779.74bn waivers granted in 2020.

The exemptions included Value Added Tax relief granted on imports, waivers and concessions on import duties, ECOWAS Trade Liberalisation Scheme, surcharges, Comprehensive Import Supervision Scheme, as well as excise and levies.

These data are contained in the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategy Paper.

The paper disclosed that this exemption was a humongous amount of revenue forgone relative to the N1.34tn collected as total Customs’ revenue in 2021.

Across the world, import duty waivers, exemptions, and concessions are used by governments to protect local businesses and jobs, but they can also be abused and become a major drain on the national economy.

Also, import duty waivers are vehicles to meet specific economic goals, especially in protecting local industries, creating jobs, and promoting exports.

A breakdown of the aggregate Customs’ exemption showed waivers on import duties were valued at N435.85bn, surcharge (7 percent of import duty) was N30.38bn, while Common External Tariff levy was N1.42tn.

Similarly, Comprehensive Import Supervision Scheme was valued at N130.04bn; ECOWAS Trade Liberalisation Scheme, N72.91bn; iron levy, N115,879; National Automotive Council levy, N41.39m; and VAT (import VAT), N208.24bn

The data revealed that the highest jump in aggregate Customs exemptions was in the Common External Tariff levy, which jumped from N223.99bn in 2020 to N1.42tn in 2021.

In 2020, import duty was N305.65bn, the surcharge was N21.29bn, the Common External Tariff levy was N223.99bn; the Comprehensive Import Supervision Scheme was N28.87bn, while ECOWAS Trade Liberalisation Scheme was N1.08bn.

Also, the iron levy was N113,776, the National Automotive Council levy was N1.08bn, and Import VAT was N179.60bn.

The report said, “The exemption applied to imported goods covered by diplomatic privileges, military hardwares, fuels and lubricants, hospital and surgical equipment, aircraft (their parts and ancillary equipment), plant and machinery imported for use by companies in export processing zones, health, and medical supplies to abate the spread of COVID.

“Other exemptions include reliefs on the presidential initiative on COVID-19 supplies, import duty, and VAT on commercial airlines. Estimating the tax expenditure on customs and VAT relief granted on imports was constrained by the quality of available data.

“Tax expenditure estimated based on the Nigerian tax reference system amounted to N1.95tn including N1.419tn from waivers of common external tariff levy, which constitutes 72.6 percent of all customs tax expenditures.

”Import VAT tax expenditures amounted to N111bn. Of the N1.419tn from waivers of common external tariff levy, import duties exemption certificate amounted to N1.417tn.”

The report further revealed that petroleum products (fuels and lubricants) accounted for 46 percent of the N216.88bn import duty waiver granted.

In 2021, China accounted for nearly half of the total relief granted, with Singapore, Netherlands, Togo, Benin, and India among the other top countries benefiting from these reliefs.

Related Topics:Customs grants waivers featured

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Customs

Adeniyi, CGC, makes refresher course mandatory for officers ,matches them out on 5- kilometer fitness exercise in Abuja

Wale Adeniyi, Ag, CGC

The Eyewitness Reporter

The Acting Comptroller General of Customs, Adewale Adeniyi, has continued to motivate the men and officers of the service with his innovative programmes that are meant to enhance their efficiency and professionalism.

The latest initiative of the CGC, whose ascendancy to the top cadre of the Customs has continued to energize the service, was the introduction of programmes aimed at enhancing the mental and physical alertness of officers.

Consequently, Adeniyi has made refresher course for officers from the Superintendent cadre mandatory every five years.

He made this known during the passing out parade of Course 1/2023 at the Nigeria Customs Service Training College in Ikeja, Lagos on Friday, September 22nd, 2023.

Speaking to the 81 Cadets who have successfully completed their training and passed out of the Training College after six months of rigorous preparation, Adeniyi charged them to uphold the highest level of integrity and professionalism while discharging their lawful duties.

He congratulated the cadets on their successful completion of training and welcomed them into the service.

He expressed hope for a better service, equipped them with knowledge and skills, and urged them to make a meaningful difference in the nation.

He emphasized the importance of discipline, good conduct, and the highest level of integrity in their actions, reminding them that they represent excellence and the Nigeria Customs Service.

While the CGC, on Friday, September 22nd, 2023, in Lagos announced the mandatory refresher course for officers to enhance their mental alertness, he however led the officers on a fitness exercise the following day, Saturday, September 23rd, 2023, in Abuja to enhance their physical alertness.

At the 5- 5-kilometre marathon walk tagged “Work-Life Balance” the CGC posited that the exercise was aimed at keeping officers physically and mentally fit to enable them to face their constitutional duties effectively.

The fitness exercise commenced in the early hours of Saturday, 23 September 2023, from Customs Headquarters Wuse Zone 3 to the newly built Customs House in Maitama Area, all in Abuja — the Federal Capital Territory.

The exercise was seen as one of the Ag. CGC’s strategic approach to enhance the agility of the officers and men of the Nigeria Customs Service.

It involved officers and men of the Service, including members of the Management Team, and Representatives of Military and Paramilitary Institutions.

Adeniyi said that the physical exercise attests to the Customs’ commitment to consolidate on critical areas of national development, knotting ties with stakeholders and embracing technological innovations.

“As officers and men, we come under lots of pressure to fulfill various obligations, and most of the time, these pressures come from our workplaces — emanating from the nature of our tasks, which are usually physically and mentally demanding; thus, the exercise will help reduce such pressure for us and enhance our productivity at work,” he said.

According to him, the Nigeria Customs Service had, over the past 15 years, established 32 clinics and medical centres all over the country to take care of the officers’ health, adding that “as we embark on this journey, it is vital to understand the essence of this initiative and why we need to flag it off.”

He motivated them to continue to engage themselves in extra exercises such as jogging, mountain hiking, dancing and all other curricular activities while also urging them to embrace the work-life balance as it will continue to improve their health and also contribute to enhancing the efficiency of the Service.

The Customs Chief also mentioned that the exercise will facilitate the unity and love between Customs officers across the federation, saying that “participating in this brisk walking exercise fosters friendship and unity and sense of shared purpose amongst us.”

The brisk walking exercise was attended by Deputy Comptroller-Generals of Customs in charge of different Units, Assistant Comptroller-Generals, and all Comptrollers down to Assistant of Customs III. Other participants who graced the ‘Walk-Life Balance’ exercise were from the Ministry of Investment, Trade and Industry, Nigerian Correctional Center, Immigration Service, National Drug Law Enforcement Agency, and Nigeria Army.

Customs

Customs, UN agency collaborate to fight smuggling

The Eyewitness Reporter

The anti-smuggling efforts of the Nigeria Customs Service has received a boost with the support of the United Nations agency,

United Nations Human Settlements Programme, UN—Habitat.

The Customs got the assurance of collaboration from the UN agency on Tuesday, September 19, 2023, when the acting Comptroller General of Customs, Adewale Adeniyi hosted the ambassadors of the global agency led by Dr. Raymond Edoh in his office.

Adeniyi told his guests that the Service, under his watch, will implement every necessary action against saboteurs of Nigeria’s economy to cripple their ‘illegitimate’ business of smuggling.

“On behalf of the entire Management Team of the Nigeria Customs Service, I wish to inform you that we will partner with you in this campaign, and we will grant you all forms of support you may need to carry out this campaign — and I want to assign one of our amiable DCGs, Abba Kura, to work with you closely.”

He appreciated how they traveled from afar to inform the Nigeria Customs Service of their campaign against smuggling, which, according to him, the Nigeria Customs Service has already started yielding positive results in suppressing the menace of smuggling.

The CGC also welcomed Dr Raymond’s offer to engage officers and men of the Service in capacity—building to enhance their understanding of digital literacy skills, adding that the Service has already started embracing technology to advance its work by introducing related courses to officers.

The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat and believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.

“What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”

He also appreciated their pledge to train officers and men of the Service in digital literacy skills, assuring that the Service will continue to prioritize proficiency in the fight against smuggling through a technological approach.

He underscored the importance of digital skills, promising that the relevant Service department will enhance trade facilitation.

On his part, the Director of UN—Habitat, Dr. Raymond Edoh, appreciated President Bola Ahmed Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”

According to him, they decided to visit the Ag. CGC at the Customs Headquarters to express their interest in partnering with the Service.

He appreciated the Service for being a “gatekeeper of the country” that protects citizens against border threats, stressing that his organization will collaborate with NCS to mitigate the smuggling of illicit goods and train officers and men of Customs on digital literacy skills and certification.

UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.

Customs

MARAN raises alarm over continued depreciation of Customs’ N180 billion boats on Lagos Marina waters —- calls on CGC Adeniyi to deploy the assets

Wale Adeniyi, Ag, CGC

The Eyewitness Reporter

The Maritime Reporters Association of Nigeria (MARAN) has called on the Comptroller General of the Nigeria Customs Service, Adewale Adeniyi, to rescue the N180 billion Customs patrol boats from further depreciation on the Lagos Marina waters.

In a statement issued by the foremost maritime journalists group, the anti-smuggling patrol boats procured by the former President Goodluck Jonathan Administration for the Nigeria Customs Service (NCS), have been abandoned since 2015 at the Marina Lagos waterfront.

The group noted with concern that more than eight years after procurement, and many years after the immediate past administration of Customs led by Hameed Ali promised that the two patrol boats would be rescued from disuse, the boats have rather become a pitiable sight as most of its gadgets have gone useless.

” More pathetic and anger-inducing is the fact that the patrol boats, which consume more than N5 billion as annual maintenance fees have, however, not been put into use even after being commissioned by former Customs boss, Rtd Col. Hameed Ali.

“It is more unpardonable to note that while these vessels are being eaten away daily by termites, the officers and men of the Western and Eastern Marine Commands of the Customs go on patrol operations on the waterways with obsolete and smaller patrol boats that have made them easy prey for smugglers.

“Many have lost their lives in the process.

“Inside sources claimed that the boats are more than overdue for dry-docking and routine maintenance, going by the manufacturer’s specification.

“It will be recalled that the procurement of the patrol boats was initiated by the management of NCS led by the late Abdullahi Dikko Inde, to boost its marine anti-smuggling operations.

“At that time, the NCS operations, according to research, were at their lowest point because of a lack of functional patrol boats and other operational equipment to withstand smugglers with sophisticated fast-moving equipment, fully armed.

“The government awarded the contract to build the boats to a South African firm, Kobus Naval Design , KND, in 2012.

“The then Jonathan-led Federal Executive Council, FEC, approved N3 billion for the procurement of the two NCS patrol boats for the surveillance of Nigeria waters.

“Based on the order, the two vessels, named ”Customs Pride” and” Group of Nine” were slated to be delivered to the NCS within 10 months but were not until April 2015, three years behind schedule.

“The total cost of building the two patrol boats by the firm catapulted to over N180bn from the initial approved sum, raising questions about perceived sharp practices.

“The patrol boats, which were delivered to the NCS in April 2015 have since then berthed at the Marina Waterfronts, Lagos, where it is idling and rotting away at significant cost of maintenance to the NCS.

“While commissioning the two sea-going boats in September 2019, the CG of Customs, Hameed Ali, admitted that the Service has been weak on the waterways compared to the land and that this necessitated the purchase of the two boats.

“This situation, he agreed, led to the death of nine Customs marine officers while confronting deadly petrol smugglers on the sea in 2012.

“It was in honour of this group of nine gallant officers who died in the service of their fatherland that one of the seagoing vessels was named ‘Group of Nine’ while the other represents the ‘Customs Pride’ on the sea.

“One would expect that since the Service now has four marine commands, namely Western Marine, Eastern Maritime, North-Western Marine and North Eastern Marine commands, there is no better time than now to put the boats the effective.

“Presently Nigeria is going through economic turbulence, and cannot afford the culture of waste amplified by the past administration”

The group therefore called on the Acting CG of Customs, Bashir Adewale Adeniyi, to deploy his dynamic attention to this issue and take immediate steps to get the boats functional as the Customs operations, more than ever, require these vessels to confront smugglers.

“We advise that the issues surrounding the abandonment of the vessels should be sorted out immediately or the Customs management should seek the help of experts to rescue them.

“Nigeria Customs management should purge itself of the indifference and above board attitude of its immediate predecessor that led us to this sorry state”