The National Assembly Joint Committee on Finance on Tuesday unanimously directed the Nigeria Customs Service (NCS) to block revenue leakages and implement stringent measures to achieve the N10.5 trillion revenue target for 2025.
This directive came as the Joint Committee issued a 48-hour ultimatum to the Chief Executive Officers of key revenue-generating agencies, including the Chairman of the Federal Inland Revenue Service (FIRS), Yemi Cardoso, and the Managing Directors of the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA).
The lawmakers, who strongly opposed the N6.5 trillion revenue projection presented for the year, emphasized the need for the NCS to ensure effective personnel monitoring and address issues such as under-declaration and other sharp practices at the nation’s ports.
In his address, the Chairman of the Senate Committee on Finance, Senator Sani Musa, stated that the new N10.5 trillion revenue target is achievable, citing information from the Budget Office of the Federation and other parameters.
He, however, warned that the Parliament would not hesitate to raise the revenue target to N12 trillion if the issue of non-remittance of 80% of the Operating Surplus, as required by the Fiscal Responsibility Act of 2007, is not resolved with the Fiscal Responsibility Commission (FRC).
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In his presentation, the FRC Chairman, Mr. Victor Murako, alleged that while the NCS complied with the Act from 2015 to 2019, it has failed to remit its Operating Surplus to the Consolidated Revenue Fund since then. According to him, the NCS owes ₦8.6 billion as of 2019. He added that the agreement reached after the intervention of the Public Accounts Committee last year was not honored by the NCS.
In response, the NCS Comptroller General, Mr. Adeniyi Adewale, assured the Committee that the Service’s Legal Department would address the Operating Surplus issue within one to two weeks.
Addressing questions from the Chairman of the House Committee on Finance, Hon. James Faleke, regarding the revenues accruing to the NCS, Mr. Adewale explained that the Service collects 2% VAT and 7% commission but has yet to implement the 4% Free on Board (FOB) charges, which are being worked out by the Ministry of Finance and the Accountant General’s office. He also noted irregularities in the CISS over the past two years.
During the interactive session with heads of revenue-generating agencies, the lawmakers expressed dissatisfaction with the failure of some government agencies to honor invitations for the 2025 budget defense. Agencies such as the Nigerian Postal Service (NPS), Nigerian Railway Corporation (NRC), Nigerian Civil Aviation Authority (NCAA), Standard Organisation of Nigeria (SON), and the Tertiary Education Trust Fund were singled out for non-compliance. Others included the Oil and Gas Free Zones Authority, National Agency for Food and Drug Administration and Control (NAFDAC), Nigerian Copyright Commission, and the National Insurance Commission, among others.
The Joint Committee warned that any agency failing to appear risks withdrawal of funding for the 2025 fiscal year. For self-funded agencies, the Committee stated that it would recommend withholding funding from the Minister of Finance and the Accountant General of the Federation.
Senator Sani Musa reiterated that President Bola Tinubu, in presenting the 2025 budget, had mandated all Ministers and agency heads to defend their budgets responsibly before the National Assembly. He expressed frustration that many agencies ignored the invitation, even as lawmakers cut short their Christmas holidays to fulfill this national assignment.
“To our dismay, many agencies have refused to honor our invitations to scrutinize their 2024 performance and justify their 2025 projections. The Joint Committee hereby gives these agencies 48 hours to appear. Failure to comply will result in recommendations to the Appropriation Committee to withhold their budget allocations,” Senator Musa declared.
Hon. James Faleke, Chairman of the House Committee on Finance, added that the budget defense exercise is critical for boosting revenue and reducing reliance on borrowing.
“If these agencies fail to appear, the National Assembly will do the needful,” he said.
