Nigeria Customs Service Budget Under Fire: Committee Raises Concerns Over 7% Collection Charge and Poor Performance of 1% CISS

 

The Nigeria Customs Service (NCS) has come under scrutiny from the House Customs Committee over its 2025 budget proposal. The committee, led by Chairman Hon. Leke Abejide, has raised concerns over the service's 7% charge on cost of collection, citing that it is not backed by law.

Committee members at budget defense 

According to the committee, the only legal source of income for the NCS is the 4% Free on Board (FOB) charge, as stipulated in Section 18 of the Nigerian Customs Service Act 2023. The committee has demanded a probe into the alleged illegal charge, which could lead to a refund of the charges to importers and a review of the budget proposal.


Poor Performance of 1% CISS


The committee also expressed disappointment over the poor performance of the 1% Comprehensive Import Supervision Scheme (CISS), which recorded zero revenue from January to December 2024. The CISS is designed to take care of service providers such as COTECNA, SGS, and Global SCAN, who are responsible for valuation and insurance of Risk Assurance Reports (RAR) and maintaining scanning operations.

Budget Breakdown


The committee questioned the breakdown of the budget, particularly the personnel cost of 43.53%, overhead cost of 46.68%, and capital cost of 45.34%. The committee chairman noted that the committee would need to review the budget proposal carefully to ensure that it aligns with the needs of the service and the country.

What's Next?

The committee will continue to scrutinize the budget proposal and hold public hearings to ensure that the concerns raised are addressed. The NCS will also be required to provide additional information and explanations to support its budget proposal.


Implications


The committee's concerns over the 7% collection charge and the poor performance of the 1% CISS have significant implications for the NCS. If the charges are found to be illegal, it could lead to a refund of the charges to importers and a review of the budget proposal. Additionally, the poor performance of the CISS could lead to a review of the scheme and the implementation of measures to improve its effectiveness.

Conclusion

The NCS budget proposal has sparked a heated debate, with the committee raising concerns over the service's revenue generation and budget breakdown. As the committee continues to scrutinize the proposal, it remains to be seen how the NCS will address these concerns and ensure that its budget is implemented effectively.

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