The revenue target of the Nigeria Customs Service for 2016 fell by N216.5bn, the Comptroller-General of Customs, Col. Hameed Ali (retd), told the House of Representatives on Wednesday in Abuja.

This was a dip of 23.11 per cent as against the original target of N937.3bn set for the year.

The agency only succeeded in collecting N720.7bn or 76.89 per cent of the target revenue between January and December last year.

The NCS collected N177.9bn as Value Added Tax on imports, bringing the total revenue collection to N898.6bn.

Ali had appeared before the House Committee on Customs to defend the Customs 2017 budget estimates.

The committee is chaired by a member of the All Progressives Congress from Lagos State, Mr. James Faleke.

The Federal Government had started efforts to diversify the economy in 2016 by focusing on non-oil revenue resources, particularly through the NCS.

But, Ali told the lawmakers that certain factors led to the drop in revenue collection.

For example, he stated that while there was a proposed policy to collect levies on luxury items consumed by the super-rich, there was no legal backing to enforce it.

This implies that luxury goods were imported all through 2016 without the payment of levies.

“There was no legal backing to enforce the collection of the proposed levy on luxury items. There was no importation of polished rice in the period under review,” he added.

When asked by the committee to mention the luxury items to be covered by the proposed policy, the CG listed them as luxury cars, champagne and furniture.

He added, “Some of our emirs and other traditional rulers love to import Royce Rolls and very expensive cars. You have costly wines and so on for some of the super-rich. The government is saying that if you have decided to buy something out of the ordinary, you should pay a levy.

“But, we need a legal framework and policy pronouncement by the Ministry of Finance for the Customs to enforce the levy. We have to be able to determine what to collect on the various categories of items.”

Another factor Ali mentioned was the decision of the government to place 41 items on the restriction list from accessing forex at the official window.

He added that the drop in the value of the naira, collapsed scanners at border points and the porous nature of the country’s borders also affected the revenue target.

Out of the budgeted N81.2bn for its operations in 2016, Ali stated that only N45bn was eventually accessed by the agency.

He claimed that to be able to continue to pay salaries, the NCS had to fall back to the N6.1bn savings it accrued over time for the purpose of such interventions.

Lawmakers grilled the CG on the insistence of the service to execute the ban it had placed on the importation of vehicles through land borders.

Ali said the policy was justifiable to grow the Nigerian economy.

According to him, Benin Republic enjoys the revenue for cars driven in Nigeria.

He argued that 99.9 per cent of cars imported into Benin always ended up in Nigeria through smuggling and other illegal activities on the land borders.

“Why should we be growing the economy of another country when our own is facing challenges? That is the point that we have been making. That Benin cars will come to Nigeria after they have collected their import duties over there,” Ali added.

http://investorsking.com/customs-revenue-fell-by-n216-5bn-in-2016-ali/

Hameed Ali,the Nightmare of lawless lawmakers(senators)

.

Nawa o

So this is good or bad news?

Did he wear uniform?

Where this money dem dey go?

Nah wah ooh... make dem share 1billon gimme nah...

Hmm

Even the custom uniform given to you has fallen on the ground and remained there till date, why won't the revenue fell?.



See your bear-bear like an orphaned He-goat.

Why wunt it drop by uncountable billions when all u know is hw to do is to be stubborn and unleash olden days army law on customs..
Meanwhile, it might just be a way to make Nigerians believe that there is no money so he can steal as he likes..
Useless buhari brother..

why won't it fall since they have turned the ports to a stealing area where they take people's hard earned imported goods to the north to be distributed to almajiris.

Still a very good performance considering the hindrances.

How do u expect profit. Wen u put an army retired soldier to be in charge of customs.

Government of Joke .

Even if there is no decline in the revenue , there will still be no positive impact in the economy

Why won't it fall when you guys keep on targeting the ibo trader (knowing fully well dey import about 70% of the total import in Nigeria )

U think dey will still import good so u guys can seize it again and again ?

Okwala unu

When the president is 8n ghost mode, Wetin you expect?

This man is a big fo.ol.
You should go and weed out the corrupt officials in our ports and organize the system instead of harassing innocent Nigerians on the road with ur stupid custom officials

LastSurvivor11:
Why wunt it drop by uncountable billions when all u know is hw to do is to be stubborn and unleash olden days army law on customs..
Meanwhile, it might just be a way to make Nigerians believe that there is no money so he can steal as he likes..
Useless buhari brother..

You these gullible people don't even know any thing about this country ,all you know is to antagonize. That was the target being given to him,and make your research about his predecessors of what the made is not even close to his achievement. I think the last CG made around #93b.Be apologetic.

Revenue everywhere is dropping on per second billing, why won't that of customs drop too or is customs immune to bad economy?

Basfaq:
You these gullible people don't even know any thing about this country ,all you know is to antagonize. That was the target being given to him,and make your research about his predecessors of what the made is not even close to his achievement. I think the last CG made around #93b.Be apologetic.

Mumu, u that know everything y can't you tell us..
Zombie..

Col Hameed Ali. It's a shame on you and your Customs that it is cheaper to bring in cars through Benin Republic than direct to Nigeria. The import duties collected by the Benin Government is so affordable that Nigerians prefer to pay it along with the Land Border charges. Asking your citizens to pay 70% duty charge is outright wickedness!

News like this is very disturbing and should provoke serious contemplation amongst Nigerians. The primary rationale for the Buhari regime is the belief in its ability to tackle corruption in sharp contrast to the GEJ regime: but what if the new regime is causing more economic damage than any improved gains in the reduction of corruption?

Contrast this 2016 revenue of N898bn with the 2014 revenue of N977bn under the famed corrupt buffoon:

The Nigeria Customs Service (NCS) raked in about N977.09 billion revenues in 2014 from its target of N1.2 trillion for the year.

https://www.google.co.uk/amp/leadership.ng/business/400503/customs-rakes-n977-09bn-revenue-2014/amp

I know what Buhari apologists will claim: that Nigeria was in the midst of an oil boom in 2014 and its therefore an unfair comparison. But we forget that the exchange rate in 2016 was lower than in 2014 (N305 in the 2nd half of 2016) and that the GEJ was supposed to be "chopping all our money." Has anyone forgotten the scandal regarding the import waiver?

This is the dilemma I have posed to some of Nairaland's Buhari apologists: why is there no discernible difference in revenue collection given we have moved from a supposedly hopelessly corrupt regime to an honest regime?

Data do not lie and apart from the desire to sate some ethnically motivated ambitions/animosity or a naive investment of hope, the data suggests that supporting the Buhari regime represents a case of choosing medicine whose effects are worse than the disease one is seeking to cure.

Basfaq:
You these gullible people don't even know any thing about this country ,all you know is to antagonize. That was the target being given to him,and make your research about his predecessors of what the made is not even close to his achievement. I think the last CG made around #93b.Be apologetic.

No sir.

In 2016, the Customs generated a total of N898b if vat is included

In 2015, the Customs generated a total of N904b if vat is included

In 2014, the Customs generated a total of N977b if vat is included

Also note that the exchange rate used for duties increased from N197 to N285 to N307 in these periods

Basfaq:
You these gullible people don't even know any thing about this country ,all you know is to antagonize. That was the target being given to him,and make your research about his predecessors of what the made is not even close to his achievement. I think the last CG made around #93b.Be apologetic.

The last DG made N93bn? I don't think we have produced figures lower than N100bn since the Abacha days. See my post below which I have excerpted below:

The Nigeria Customs Service (NCS) raked in about N977.09 billion revenues in 2014 from its target of N1.2 trillion for the year.

https://www.google.co.uk/amp/leadership.ng/business/400503/customs-rakes-n977-09bn-revenue-2014/amp

This information is freely available on the net, though I doubt that Buhari fans are moved by evidence.

Tamaris1:
Col Hameed Ali. It's a shame on you and your Customs that it is cheaper to bring in cars through Benin Republic than direct to Nigeria. The import duties collected by the Benin Government is so affordable that Nigerians prefer to pay it along with the Land Border charges. Asking your citizens to pay 70% duty charge is outright wickedness!

Ali or the Customs is not to blame for the rates determination. It is the government that fix the rates while Customs just implement.

GEJ administration jerked up the rates on vehicles in order to boost local production

2n2k:


No sir.

In 2016, the custom generated a total of N898b if vat is included

In 2015, the custom generated a total of N904b if vat is included

In 2014, the custom generated a total of N977b if vat is included

They don't care. All they know is that GEJ stole all our money and Buhari is fighting corruption.

Remember that the exchange rate was N155 to $1 before and is N305 in the 2nd half of 2016. If you adjust the 2016 figure for the exchange rate difference, the 2016 figure is even more alarming.

Tamaris1:
Col Hameed Ali. It's a shame on you and your Customs that it is cheaper to bring in cars through Benin Republic than direct to Nigeria. The import duties collected by the Benin Government is so affordable that Nigerians prefer to pay it along with the Land Border charges. Asking your citizens to pay 70% duty charge is outright wickedness!

The duty on fairly used cars is 35%, brand new cars is what is 70%.

The duties were increased to this rate in 2014 long before Col. Hamid came on board.

4Play:


The last DG made N93bn? I don't think we have produced figures lower than N100bn since the Abacha days. See my post below which I have excerpted below:


https://www.google.co.uk/amp/leadership.ng/business/400503/customs-rakes-n977-09bn-revenue-2014/amp

This information is freely available on the net, though I doubt that Buhari fans are moved by evidence.

Evidence and logic are not important to them.

Their brains have been savagely damaged and tuned to believe in magic and theatrics permanently.

agabusta:


The duty on fairly used cars is 35%, brand new cars is what is 70%.

The duties were increased to this rate in 2014 long before Col. Hamid came on board.

"We hear you."

Jonathan also increased the exchange rate in 1865 before Hamid Ali's great grandfather was born.