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Tag: The Nigeria Customs Service

  • “Nigeria Customs to Resume Seized Rice Distribution, Aims to Alleviate Hardship.”

    “Nigeria Customs to Resume Seized Rice Distribution, Aims to Alleviate Hardship.”

    By Daniel Edu

    The Nigeria Customs Service, Oyo/Ogun Command, has announced its intention to resume the distribution of seized rice and other food items as part of efforts to alleviate the prevailing hardship faced by Nigerians. The Area Controller, Oyo/Osun Command, Ben Oramalugo, disclosed this during a press briefing at the command headquarters in Ibadan.

    The Customs had earlier initiated the distribution of seized food items following the Federal Government’s directive to assist Nigerians amid the challenging economic conditions. However, the rice distribution was temporarily halted after a tragic incident in Lagos, where individuals attempting to gain access to the venue resulted in multiple casualties.

    Oramalugo emphasized that the renewed distribution aims to address the hardship exacerbated by soaring food prices and the overall high cost of living. The Customs Service intends to collaborate with the Federal Government to finalize the modalities for the distribution, ensuring that the process is well-organized to avoid a recurrence of the unfortunate incident in Lagos.

    The Area Controller stressed the commitment to fairness and transparency in the distribution process. Eligible beneficiaries will undergo careful screening and verification to guarantee an equitable allocation of seized rice and other food items. Oramalugo assured the public of regular updates on the progress of the distribution.

    He also reiterated the Customs’ stance against smuggling, emphasizing the illegality of such activities. Oramalugo called for public support in combating smuggling, underscoring the need to adhere to legal channels for importing goods into the country.

  • Presidential Committee Proposes Transfer of Direct Revenue Collection from Customs and 62 MDAs

    Presidential Committee Proposes Transfer of Direct Revenue Collection from Customs and 62 MDAs

    By Daniel Edu

    The Presidential Committee on Tax Policy and Fiscal Reforms is considering a significant change in revenue collection practices. The Nigeria Customs Service and 62 other Ministries, Departments, and Agencies (MDAs) of the Federal Government might soon cease direct revenue collection responsibilities.

    The committee suggests that the Federal Inland Revenue Service (FIRS) will take over revenue collection for these MDAs. The committee’s Chairman, Taiwo Oyedele, shared this information during an appearance on Channels Television’s Sunrise Daily breakfast show on Wednesday.

    President Bola Tinubu recently inaugurated the tax reforms committee, which boasts diverse membership, including Orire Agbaje, a 400-level Economics student from the University of Ibadan (UI).

    Oyedele explained that the current setup poses challenges, leading to high collection costs and inefficiencies. The MDAs, originally intended for specific functions, become sidetracked when tasked with revenue collection. By transferring revenue collection to the FIRS, benefits such as improved efficiency, reduced collection costs, and enhanced focus on core functions are expected.

    Oyedele, a former Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), emphasized that MDAs should concentrate on their primary responsibilities. For instance, Customs should focus on trade facilitation and border protection, while regulatory bodies like the Nigerian Communications Commission (NCC) should focus solely on telecommunications regulation.

    The proposed shift is envisioned to bring transparency and accountability to revenue collection, as it becomes clearer how collected funds are allocated and utilized.

    In the larger context of Nigeria’s tax landscape, Oyedele highlighted a substantial tax gap estimated at around 20 trillion naira. The focus on key taxes like Value Added Tax, Corporate Income Tax, and Personal Income Tax is necessary due to non-compliance, particularly within the middle class and elite segments. Some individuals pay significantly lower taxes than their obligations, highlighting the need for more robust tax enforcement and collection mechanisms.