The House of Representatives Committee on Customs and Excise has approved the N1.132 trillion proposed 2025 budget of the Nigeria Customs Service (NCS).
The committee approved the proposed budget presented by the Comptroller General (CG), Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, represented by the DCG, Finance, Administration and Technical Services, DCG Bello Muhammed Jibo on Monday.
Presenting the budget proposal, Adeniyi said the revenue target for the 2025 fiscal year was N6.584 trillion consisting of N3.853 trillion for federation, N1.081 billion for non-federation and N1.650 trillion for import VAT.
Giving a breakdown of the expected revenue, the NCS CG stated that, it will be sources from 4% Free-On-Board (FOB) for 2024, N1.070 trillion; 2% VAT share of NCS N33.01 billion and funds for ongoing Capital projects N29.05 billion.
According to him, the proposed budget has personnel cost of N247.16bn, an overhead cost of N239.97bn and a capital cost of N645.42bn.
However, the committee gave June 30 ultimatum to stop the Comprehensive Import Suspension Scheme (CISS) collection and 7% Cost of Collection or risk legal action as because they are illegal and not backed by any law.
Chairman of the committee, Rep. Leke Abejide gave the directive after a unanimous voice vote by members of the committee.
He observed that the NCS, from January to December 2024, recorded zero on the illegal collection of the 60% of the 1% Comprehensive Import Suspension Scheme (CISS) which was hitherto part of their revenue source to fund their overhead, personnel cost and capital projects.
Recall the CISS has been suspended by the current NCS Act 2023, but it is still allegedly being collected by the Service.
“I have gone through your 2024 Budget performance and was surprised and lack words to express the level of poor funding of Nigeria Customs Service which made the level of your performance on Personnel cost to stand at 43.53%, overhead cost at 46.34% and capital project performance at 45.68% despite the service surpassing the target of 2024 which was N5.079 trillion and you eventually generated and accounted for N6.105 trillion representing an increase of N1.026 trillion or 20.21% in 2024,” Abejide lamented.
He added, “This committee would like to know despite outperforming your target yet you could not fund your personnel cost, overhead cost and capital projects both new and ongoing projects.
“Another shocking revelation is that from January to December in 2024 the 60% of the 1% comprehensive import suspension scheme (CISS) which was part of the revenue source to fund your overhead, personnel cost and capital projects recorded zero revenue to your cover.
According to him, “It is in the opinion of this honourable committee that you should tell us what went wrong because the purpose of creating 1% CISS was to take care of service providers back then such as COTECNA, SGS, and GLOBAL SCAN who were responsible for valuation and the issuance of Risk Assessment Report (RAR) and maintain scanning operations.
“Also, payment is equally made to Web Fountaine Limited that provided network and automation to NCS but about 80% of these operations and work schedules have been taken over by Nigeria Customs Service therefore, why are you not getting your share of 60% of the 1% CISS?
“However, this committee is not unaware that CISS is not backed by any law in Nigeria. It is not LFN and even your 7% Cost of Collection is equally illegal as it is not in LFN.
“The only legal source of income back by the Act of Parliament as signed by the President of the Federal Republic of Nigeria into law and is gazetted in LFN is the 4% Free-On Board (FOB) which can be found in section 18(1a) of Nigeria Customs Service Act, 2023 (Federal Republic of Nigeria official Gazette No. 105 Lagos-9th June, 2023 Vol.110)”.
The committee therefore warned that if the NCS collects the CISS or the 7% Cost of Collection, it will be taken to court to face the wrath of the law for illegality and violation of existing laws of the Federation of Nigeria.
“By the end of this month, June 30th, 2025, you must not collect the CISS again. It is an executive fiat of the military. This is a democratic dispensation. We give you the opportunity of these few days. On the 1st of July, you will face the wrath of the law,” Abejide.
