The Nigeria Customs Service (NCS) assured Senate members yesterday that it would generate N3.019 trillion in revenue for the Federation Account this year.

This comes as the Nigerian House of Representatives directed the Central Bank of Nigeria (CBN) and the Nigerian Customs Service (NCS) to align their positions on the electronic invoice policy and report back to the House on March 17, 2022, for further action.

Colonel Hameed Ali (retd.), the NCS Comptroller General, gave the assurance when he testified before the Senate Committee on Customs, Excise, and Tariff.

The NCS targets, according to Ali, were N2.019 trillion from the Federation, N253.23 billion from non-federation, and N746.96 billion from import Value Added Tax (VAT).
The National Assembly set a revenue target of N1.465 trillion for the federal government’s revenue-generating agencies this year.

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The Customs boss, who appeared before a Senate panel to present and defend the NCS’s 2022 Budget, said the revenue target for 2022 was N965.42 billion, or 31.98 percent, higher than the revenue target for 2021.
According to Ali, the Service proposed a budget expenditure of N369.14 billion for the fiscal year 2022, which would be funded by a 7% cost of collection estimate of N151.84 billion.
He also stated that the agency hoped to earn N60.12 billion, with 60% CISS.

NCS’s 2% VAT share would amount to N14 94 billion, he said, while the retained income would be N114.3 billion. He estimated that the agency’s portion of the excess target for 2021 is N27.85 billion.

For the fiscal year 2021, the NCS proposed a budget expenditure of N242.45 billion.
Ali explained that the expected income included N108.85 billion in personnel costs, or 29.49 percent, and N45.89 billion in overhead costs, or 12.43 percent.

He also stated that the agency proposed a capital cost of N214.30 billion, or 58.08 percent, with a total cost of N369.04 billion, or 100.00 percent.

When asked if the revenue target could be increased beyond N3.1 trillion, the NCS boss cautioned against overly ambitious targets, noting that the one set for 2022 was already on the high side, in order to avoid crippling the economy.

Senator Francis Alimikhena, Chairman of the Senate Committee on Customs, Excise, and Tariffs, took a swipe at the Customs’ continued complaints about scanners that don’t work. He warned that the excuses must be addressed immediately in order to boost the country’s revenue drive, and that national assets must not be allowed to deteriorate.

Alimikhena urged the NCS chief to ensure that the revenue-generating agency’s 2023 budget is submitted to the National Assembly by the end of October 2022.
He claimed that by doing so, his panel would be able to expedite the bill’s passage before the end of December 2022.
“The Nigeria budget cycle runs from January to December,” he added. Customs should be aware of this circle; late budget submissions will no longer be accepted. The budget for 2023 should arrive in the National Assembly by the end of October 2022, allowing for quick passage before the end of December 2022.

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A House committee is urging the CBN and Customs to harmonize their e-invoice policies.

The CBN and the NCS have been directed by the House of Representatives to harmonize their positions on the electronic invoice policy.
During a meeting with both agencies and other stakeholders yesterday to address issues arising from the CBN’s introduction of the new system, the lawmakers gave the directive through their Committees on Customs and Excise as well as Banking and Currency.

The CBN had announced that the new system would begin on February 1, 2022, but the House had announced its suspension on January 27, 2022, and directed the apex bank to adopt a 90-day timeline for policy implementation in order to avoid destabilizing the economy.

The resolutions were passed in response to a motion made by Chairman of the Committee on Customs and Excise, Leke Abejide. During the meeting, Abejide stated that the policy would be suspended until the matter was resolved.
Dr. Ozoemena Nnaji, the CBN’s Director of Trade and Exchange, said the new system was “seamless” and “integrated with the import and export process in a way that does not impede any of the stakeholders.”

She said the price of goods involved in a trade transaction was sometimes manipulated by those looking to launder money through the financial system, and that some regulators suggested that banks implement a price check on all trade transactions as a simple way to identify such activities.

This, she explained, was the goal of the new system, which the CBN implemented in collaboration with other MDAs.
“This would be one way of ensuring that the money we earn in trade reaches us without incurring foreign exchange or duty losses.” “Our main goal is to ensure that we allocate our limited foreign exchange resources to imports and that we collect export duties and transaction values due to us at market rates,” she explained.

She said a 2014 analysis of trade invoicing in Nigeria revealed a potential revenue loss to the government of $2.2 billion for the year, which she said represented 4% of total annual government revenue as reported by the IMF and 15% of the country’s total trade.

The new CBN policy, according to Assistant Controller General of Customs Galadima Saidu, is a violation of the World Trade Organization Trade Facilitation Agreement, which Nigeria is a signatory to.

He claimed that using benchmarking in valuation would defeat the purpose of the Customs valuation agreement, causing delays and uncertainty.

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He claims that the use of benchmarking in valuation has been phased out due to the dynamic nature of pricing, particularly in this time of rapid technological advancement.

“Nigeria is a signatory to the World Trade Organization’s (WTO) trade facilitation agreement. The agreements are legally binding and include sanctions that would harm the Nigerian economy.

“The CBN initiative is in violation of Article 7 of the General Agreement on Tariff and Trade of 1994, as well as Articles 1, 2 and 6 of the WTO TFA,” he claimed.

Hon Victor Nwokolo, Chairman of the Committee on Banking and Currency, stated that both government agencies must work together.

The federal government has started the process of extraditing suspended Deputy Commissioner of Police (DCP) Abba Kyari to the US to face fraud charges.

The National Drug Law Enforcement Agency (NDLEA), which currently has Kyari in custody after his arrest for alleged illicit drug dealing, began a court process against him a few hours after the extradition process began. Kyari, four of his colleagues in the Inspector General of Police Special Intelligence Response Team (IRT), and two others would be arraigned on drug-related charges at any time as a result of this development.

At the Federal High Court in Abuja, the NDLEA filed an eight-count criminal charge against the defendants.
Even though the federal government has begun the extradition process, the NDLEA court action against Kyari implies that he cannot be extradited to the United States.

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“A fugitive criminal- (a) who has been charged with an offence under the law of Nigeria or any part thereof, not being the offence for which his surrender is sought; or (b) who is serving a sentence imposed in respect of any such offence by a court in Nigeria, shall not be surrendered until such time as he has been discharged whether by acquittal or on the expiration of his sentence or otherwise,” according to Section 3 (f) of the Extradition Act
Kyari, a once-famous Nigerian police officer, is currently embroiled in a slew of criminal charges stemming from cases in which the “super cop” had previously been lauded for his efforts.

The United States had requested Kyari’s extradition to explain his alleged involvement in a $1.1 million wire fraud after the arrest and imprisonment of Abass Ramon, a.k.a. Hushpuppi, and Ramon’s alleged implication of Kyari, who was then Commander of the Police Intelligence Response Team (IRT).

Mr. Abubakar Malami (SAN), the Attorney General of the Federation (AGF) and Minister of Justice, announced yesterday that the federal government had filed an application for Kyari’s extradition before the Chief Judge of the Federal High Court in Abuja, months after the extradition request. Malami stated that the application, which was filed in response to a request from the American embassy’s diplomatic representative in Abuja, was filed under the Extradition Act and was marked: FHC/ABJ/CS/249/2022.

Only recently, during a television interview, the AGF promised that if the government was convinced, President Muhammadu Buhari’s administration would extradite Kyari to the United States to face the fraud charge filed against him, Hushpuppi, and four others.

The extradition request was “for the surrender of Abba Kyari, who is a subject in a superseding three counts indictment,” according to the minister. He claimed that the crime for which Kyari was being extradited was neither political nor minor.

Malami went on to say that the request for Kyari’s surrender was made in good faith and in the interest of justice, not to persecute or punish him because of his race, religion, nationality, or political beliefs.

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Kyari would not be victimized at his trial if he surrendered, and he would not be punished, detained, or have his personal liberty restricted because of his race, nationality, or political beliefs, according to the minister.
Malami explained that, given the circumstances of the crime, surrendering him would not be unjust or oppressive, nor would it be an overly harsh punishment. He added that Kyari was not facing any criminal charges in Nigeria for the same offense.

Kyari and four IRT members will be arrested by the NDLEA on an eight-count drug charge.

The federal government plans to charge Kyari, four of his IRT colleagues, and two others with drug-related offenses at any time now.
Kyari and his co-accused were arrested on February 14 and turned over to the police for questioning regarding drug-dealing allegations.
Mr. Joseph Sunday, the NDLEA’s Director of Prosecution and Legal Services, signed the charge, which was filed yesterday and was marked FHC/ABJ/CR/57/2022.

The anti-drug agency had previously obtained a court order to detain Kyari and others for another 14 days in order to complete its investigation and then charge them in court.
Sunday Ubua, Assistant Commissioner of Police (ACP), Bawa James, Inspector Simon Agirigba, Inspector John Nuhu, Chibuinna Patrick Umeibe, and Emeka Alphonsus Ezenwanne were among the others named in the charge.

In count one, Kyari, ACP Ubua, ASP James, Inspector Agirigba, and Inspector Nuhu, all members of the Intelligence Response Team, were accused of dealing in 17.55 kilogrammes of cocaine between January 19 and 25, violating section 14 (b) of the Natural Drug Law Enforcement Agency Act, CAP 30, Laws of the Federation of Nigeria 2004, and committing an offence.

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“That you DCP Abba Kyari, ACP Sunday J. Ubua, ASP Bawa James, Inspector Simon Agirgba, and Inspector John Nuhu, all male, conspired amongst yourselves with ASP John Umoru (now at large) to deal in 17.55 kilogrammes of cocaine on or about January 19 to 25, 2022, at the office of Inspector-General of Police (IGP) Intelligence Response Team (IRT), Abuja, on or about January 19 to

“That you, DCP Abba Kyari, ACP Sunday J. Ubua, ASP Bawa James, Inspector Simon Agirgba, and Inspector John Nuhu, all male, Adult, on or about the 19th to 25th January 2022, at Abuja within the jurisdiction of this Honourable Court, dealt in 17.55 kilogrammes of cocaine without lawful authority and thus committed an offence contrary to and punishable under section 11(c) of the National Drug Law Enforcement Agency Act, CAP

“That on or about JanuaryJl 19 to 25, 2022, within the office of the Inspector-General of (IGP) Intelligence Response Team (IRT), Abuja, within the jurisdiction of this Court, you DCP Abba Kyari, ACP Sunday Ubua, ASP Bawa James, Inspector Simon Agirgba, and Inspector John Nuhu, all male, all male, Adult conspired amongst yourselves and with ASP John Umoru (now at large) to unlawfully

“That you, DCP Abba Kyari, ACP Sunday Ubua, ASP Bawa James, Inspector Simon Agirgba, and Inspector John Nuhu, all male Adults, unlawfully tampered with 21.35 kilogrammes of cocaine seized from Chibunna Umeibe and Emeka Ezenwannne in the custody of the Inspector-General of Police (IGP) Intelligence Response Team (IRT), Abuja, within the jurisdiction of this Honourable

“That on or about the 19th January 2022 at Akanu Ibiam International Airport, Enugu Nigeria, within the jurisdiction of this Honourable Court, you Chibunna Umeibe, male adult, and Emeka Ezenwanne, male adult, without lawful authority imported 21.35 kilogrammes of cocaine and thereby committed an offence contrary to and punishable under section 14(b) of the National Drug Law Enforcement Agency ACT CAP N30 Laws of the Federation of Nigeria 2004, you

“That you Chibunna Patrick Umeibe, male, adult; and you Emeka Alphonsus Ezenwanne, male, adult on or about the 25th of January 2022 at Akanu Ibiam International Airport, Enugu, Nigeria within the jurisdiction of this Honourable Court without lawful authority imported 21.35 kilogrammes of cocaine and thereby committed an offence contrary to a punishable under section 11(a) of the National Drug Law Enforcement Agency ACT CAP N30 Laws

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“That on the 25th January 2022, at Akanu Ibiam International Airport, Enugu, Nigeria, within the jurisdiction of this Honourable Court, you Chibunna Patrick Umeibe, male, adult; and you Emeka Alphonsus Ezenwanne, male adult and one IK, now at large, knowingly possessed 21.35 kilogrammes of cocaine and thereby committed an offence contrary to and punishable under section 11(d) of the National Drug Law Enforcement Agency Act

“That you, DCP Abba Kyari, on or about January 25, 2022, at a restaurant on Port Harcourt Crescent, Area 11, Garki Abuja, within the jurisdiction of the court, attempted to obstruct the Agency and its authorised officers in the performance of their duties by offering the sum of $61,400.00 USD (sixty-one thousand, four hundred United States of America Dollars) to a senior officer of the Agency as inducement to prevent the testing of the 17.55kilogram
The defendants’ arraignment has yet to be scheduled.

According to reports, the Nigerian National Petroleum Company (NNPC) Limited may have thrown a wrench in the highly publicized deal that would have seen Seplat Energy, an indigenous oil company, buy ExxonMobil’s oil shares.

The first deal between ExxonMobil’s Nigerian unit, Mobil Oil Producing Nigeria Unlimited (MPNU), and industry leaders since the signing of the Petroleum Industry Act (PIA) in August last year has received praise.

According to reports, the Sale and Purchase Agreement (SPA) to acquire MPNU’s entire share capital was for $1.283 billion, plus up to $300 million in contingent consideration.

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Platforms Africa, a news, business, and leadership publication, reported that the state-owned oil giant had exercised its Right of First Refusal (RFR) on the asset sale.

According to reports, the RFR is included in the Joint Operating Agreement (JOA) of the Joint Venture (JV), which represents NNPC’s position on the planned sale of the shares to Seplat Energy Plc.
Attempts to reach NNPC for comment on the matter were unsuccessful at first, but a top source in the oil company said, “We will address it at the appropriate time.”

However, an anonymous industry source said last night that NNPC’s action could lead to a legal battle between Seplat and the national oil company. According to the source, NNPC does not have the authority to stop Seplat from buying the shares of the multinational oil company.

“Seplat bought ExxonMobil’s shares, not assets,” the source said. While NNPC has pre-emption rights over asset sales, it does not have such rights over stock sales.”

Furthermore, the source explained that, with its current structure, NNPC was no longer a regulator, as it had been in the past, and that “so, the regulator is the one who can intervene in the matter.”

“However, they must check the Production Sharing Contract (PSC) because if they say they are taking over ExxonMobil, they are taking over employees, pensions, and liabilities, not assets,” the source added.

According to reports, NNPC had already informed Mobil Producing Nigeria Unlimited of its intention to exercise the right of pre-emption on ExxonMobil’s planned sale of its entire onshore and shallow water asset in Nigeria.
However, according to a reliable source, the politics surrounding the deal’s cancellation could significantly derail the new vigor that the Petroleum Industry Act (PIA) was supposed to bring to the industry.
It was learned that the NNPC planned to enter into a “strategic management contract” with a company owned by a northerner who works in the oil and gas industry.

According to industry sources, the state-owned oil company, which is the majority shareholder in the joint venture with ExxonMobil, may have exercised its right of first refusal on the assets as part of a new era in which the NNPC Limited’s sole focus will be on long-term profitability.

Following ExxonMobil’s decision to receive bids for their share of the JV, the Mele Kyari-led company had previously communicated its intention to exercise its rights and match any offer made by interested parties for the assets, according to the platform.

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Following that, Seplat Energy submitted a winning bid for the assets, and ExxonMobil and Seplat Energy reached an agreement.
The right of pre-emption gives parties in a joint venture the legal right to be the first to be considered for any planned sale or takeover of assets in the JVs if either party decides to sell them.

Platforms Africa obtained a copy of a letter signed by NNPC’s Group Managing Director, Kyari, and addressed to ExxonMobil, which stated that the company’s share of the assets would be taken over.
“We are aware that you have agreed to divest from onshore and shallow waters joint ventures,” the letter stated, adding, “Clearly, we are interested.”

ExxonMobil had previously stated that the deals were subject to approval and the new NNPC position, implying that the entire sale and purchase agreement between ExxonMobil and Seplat Energy had to be terminated.

Seplat Energy, the winning bidder, had put up more than $1.2 billion for the deal to buy MPNU’s entire share capital plus contingent consideration, and was awaiting ministerial approval before the latest development.

This meant that the state-owned oil company could not pay less than $1.2 billion if it exercised its right of first refusal.

According to the letter, NNPC reiterated that it had already transformed from a corporation to a profit-driven company, and that it now had the capacity to purchase ExxonMobil’s share of the joint venture.
The NNPC recently announced a $5 billion funding agreement with Afreximbank to expand its upstream asset investment in new and existing assets.

The publishers of Africa Oil and Gas Report recently expressed concern about the national oil company’s attempt to crowd out private investors, saying that enough room should be created for some level of investment diversity. That alarm has now proven to be a wakeup call on what appears to be a grab-all attitude.

In response to NNPC’s assertion of pre-emption rights, the magazine’s publisher, Toyin Akinosho, who spoke on Arise News Channel, urged NNPC to make room for entrepreneurs, claiming that the company already has a lot on its plate and is struggling to cope.

“NNPC is in a joint venture with companies that produce at least 45 percent of our crude,” Akinosho said. They already have a lot of material. “Of all the assets in the industry, the assets they operate are the least optimized.”
He wondered why the national oil company was allegedly stifling investment in the sector, while accusing it of grabbing assets all over the country. According to him, the types of partners to whom NNPC may hand over assets are never the most experienced in the field, and the entire idea is to “gift” the assets to a third party.

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“Any excuse that ‘this is being taken over in the interest of the state’ is false. It has implemented Finance and Technical Service Agreements (FTSAs) with companies that it chooses to work the assets in the last three years,” he added.