House of Representatives rejects the N1.3 trillion in projected revenue from customs in 2022

The House of Representatives Finance Committee on Monday rejected the N1.3 trillion revenue forecast by the Nigerian Customs Service (NCS) for the fiscal year 2022.

In his presentation at the ongoing public hearing on the 2022/2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), the Comptroller General of Customs, Mr Hameed Ali, revealed that the agency is projecting revenue of N1.33 trillion for 2022.

According to him, they came up with a figure that is attainable in the hopes of exceeding it.

“We came up with a figure that is attainable, and whatever comes after that, it is our hope that we will exceed that,” he said. In our proposal, we try to be as realistic as possible.”

However, lawmakers reacted by saying that the projection was too low for Nigerians.

Hon. Leke Abejide, a member of the Committee and Chairman of the House Committee on Customs, said the projection is absurd given the naira’s depreciation.

He predicted that the agency’s proposal would be in the N2.5 trillion range.

“This is ridiculous,” he says, noting that the naira has already been devalued. So, if you want to get the real value, you’ll see that the amount of money you’re getting isn’t improving. As a result, I expected the proposal to be in the N2.5 trillion range or higher. So, if you look at the value of the naira, it needs to be reviewed upward. Please note the parameters, as well as the fact that the Finance Act has been passed. There are so many ways we can increase revenue this year compared to last.”

Hon. Muktar Ahmed, another committee member, stated that the committee will not accept anything less than N3 trillion.

Hon. James Faleke, the Chairman of the Committee, stated in his ruling that the Budget Office examines the country’s expected revenue generation at the start of each year.

He explained that it is done to determine the gap in required funds and to make adequate borrowing preparations, noting that if more revenue is generated, the amount of money that must be borrowed will be reduced.

While confirming his colleagues’ assertions, he added that when the report is finally released, everyone will be pleased with it.

“CG, the issue is that the Budget Office works with the figures that are available to them on paper,” Falake explained. And, in order to achieve results, they’ll most likely look at what’s coming in at the start of the year. We say no, because your gross revenue generation is low, given all of the available opportunities, and when compared to your previous performance in 2020 and 2021. We as a finance committee will not accept the N1.3 trillion, but I am confident that by the time our report is released, you will be pleased.”

Meanwhile, lawmakers have summoned Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), to appear before them on Wednesday without fail.

The lawmakers have also summoned Mr. Sarki Auwalu, the Director of the Department of Petroleum Resources (DPR).

Kyari, who was scheduled to speak to lawmakers on Monday about revenue generation, was represented by the company’s Group General Manager, Corporate Planning and Strategy.

Hon. Leke Abejide, a member of the committee, expressed surprise at the development, saying, “I’m flabbergasted at how the NNPC GMD treats the National Assembly.”

Kyari’s behavior, he said, is demeaning to the legislature and should not be tolerated.

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“We’re talking about revenue here, so where’s the GMD?” Abejide asked. He tries to stay away from the National Assembly at all costs. This is a disgrace to the National Assembly, and it does not bode well for him. He’s supposed to give us the figure himself, not send a representative, because we’re talking about how Nigeria can progress and solve the issue of taking loans. I propose that we excuse this representative and allow the GMD to speak to us directly.”