Senate Eyes Increased Customs Revenue to Curb Borrowing, Raises Concerns About Concessions

The Nigerian Senate has issued a stern warning to the Nigeria Customs Service (NCS): their 2024 revenue target of N5.079 trillion is likely to rise significantly. This move aims to reduce the nation’s growing debt burden and minimize reliance on further borrowing.

Senator Isah Jibrin, Chairman of the Senate Committee on Customs, delivered the message during a crucial meeting with NCS Comptroller General, Adewale Adeniyi. He emphasized the urgent need to “wriggle ourselves out of the debt trap” through increased internally generated revenue, with Customs playing a pivotal role.

“Customs should be able to generate significant income by blocking leakages,” Senator Jibrin declared, highlighting their potential to contribute substantially to debt reduction.

However, concerns regarding concessions granted to specific sectors, like agriculture, were also addressed. Senator Jibrin clarified that these exemptions apply to agricultural services and solid minerals with direct economic impact. Such exemptions aim to promote specific industries, not simply lessen the tax burden on individuals.

This Senate directive reflects a growing concern about Nigeria’s rising debt, currently exceeding N44 trillion. Increased reliance on customs revenue represents a potential solution, but questions remain about its feasibility.

Critics point to challenges like smuggling, under-declaration, and corruption within the NCS itself, questioning their ability to achieve significantly higher targets. Additionally, increased pressure on customs officials could lead to unintended consequences, such as stifling legitimate trade or encouraging further corruption.

The proposed target increase and its potential impact are sparking debate across Nigeria. While the aim of reducing debt is widely supported, concerns about effectiveness and potential negative consequences raise questions about the practicality of this approach.

Only time will tell if the Senate’s push for higher customs revenue proves successful in curbing debt and promoting economic growth. Careful planning, robust anti-corruption measures, and improved efficiency within the NCS will be crucial for its success.