The Nigerian Senate has initiated plans to review and potentially raise the Nigeria Customs Service (NCS) revenue target for 2024, currently set at N5.079 trillion, beginning in the second half of the year. This move is aimed at mitigating the country’s increasing debt burden and reducing reliance on borrowing.
The announcement was made by Senator Isah Jibrin, Chairman of the Senate Committee on Customs, during a key meeting with the Comptroller General of the NCS, Adewale Adeniyi, and other senior officials from the agency. Senator Jibrin emphasized the need for Nigeria to focus on internally generated revenue as a sustainable solution to its growing debt challenges.
“Customs plays a pivotal role in Nigeria’s financial ecosystem, contributing significantly to internally generated revenue. It is expected that they will play a leading role in this crucial effort to reduce our national debt,” Jibrin remarked. He further stressed the importance of closing any financial leakages within the system to ensure that the Customs service maximizes its potential in contributing to the nation’s fiscal health.
Jibrin further noted that Nigeria needs to curb its dependency on external loans by improving domestic revenue streams, especially through agencies like Customs. “If Customs can effectively address all potential leakages, they can generate substantial revenue, which will ease Nigeria’s debt challenges, at least in part,” he added.
On the matter of tax concessions granted to sectors such as agriculture, Jibrin explained that these were designed to support critical sectors of the economy by encouraging investment. “For instance, exemptions on agricultural equipment imports are in place to foster growth in the agricultural sector. We do this not to hinder but to support businesses contributing to key economic areas like agriculture and solid minerals,” he said.
Addressing the issue of unemployment in the country, Senator Jibrin acknowledged the challenges Nigeria faces, describing the unemployment rate as alarmingly high. He clarified that the NCS, as a major employer, has its limitations in hiring, emphasizing that although the agency aims to hire more personnel, it cannot absorb all the unemployed individuals in the country. “Customs is not the only source of employment in Nigeria, and we are pushing them to increase their workforce, though realistically, they may not go beyond 1,600 or 2,000 new hires,” he explained.
Despite the constraints, Jibrin underscored the urgency of creating more job opportunities, recognizing the difficulty in addressing the overwhelming number of unemployed Nigerians.
