The Federal Government has finally approved over N2 billion for the Nigeria Customs Service for the purchase of electronic scanners to be installed at some strategic entry points, especially at the various sea ports throughout the country, our correspondent has learnt.
The approval, we gathered, came through the Federal Ministry of Finance against the backdrop of claims that the Federal Government may have lost over N350 billion as a result of the current non-availability of the gadgets at the various ports.
The NCS is known to be a leader in terms of Internally Generated Revenue for the government; and the Federal Government has continually set target for the service in the collection of revenue on goods and services under the aegis of Tax and Exercise Duties.
In the recent past, both the importers and the NCS had complained of dwindling cargo traffic resulting from government policies, high exchange rate and bad access roads to some of the sea ports, especially the Apapa Port.
It is, therefore, safe and sane to infer that the government stands the risk of losing over N300 billion or more annually as a result of official neglect and non-compliance and adjustment to simple management rules
It is noteworthy that in the past, the NCS was known to have broken records by setting new ones in the area of revenue collection; while on the other hand, the men and officers of the service have also helped in the enforcement of the various laws that govern importation and sundry businesses. But all these appear to belong to the past.
From the available records, revenues from seaports have continually dwindled as cargo intake dropped from 84.9 million tonnes in 2014 to 77.3 million tonnes in 2015 and further nosedived to 53.2 million tonnes in 2016.
It is generally believed that, the current year [2017] may be worse, unless urgent drastic measures are put in place by the government.
Further checks by our correspondent revealed that the berthing of vessels at the Western Ports, Apapa and Tincan Island, dropped from 3, 195 in 2014 to 3,173 and 2,511, in 2015 and 2016, respectively.
This, of course, also affected customs revenue as it dropped from N977.09billion and N904 billion in 2014 and 2015, respectively to N898 billion.
The Apapa Command of the NCS earmarked a sum of N77.4 billion as revenue in the first quarter of 2017 as against N96billion, which is a short fall of N19.1 billion.
The command’s revenue chart indicated that a total sum of N25.9 billion was collected in January, N24.7 billion for February and for the month of March, N26.7 billion was earmarked.
“This is apparently an indication of deeper dip in term of revenue generation”, a concerned source said.
About five months ago, the leadership of the NCS cried out to the government for further assistance in the area of provision of modern equipment that could help their personnel deployed in the various duty posts, especially at both the sea ports and airports.
Both the sea ports and airports are generally known to be the hot spots for generating the bulk of the revenues. Insider sources had hinted our correspondent that the decision to approach the Federal Government on the matter was a fallout of several in-door meetings held by the top management of the NCS.
“The leadership of the NCS pointedly told the government that modern equipment running into billions of naira would be needed to contain the modern challenges posed by smugglers and some other unscrupulous businessmen/ women, who see trading in contraband as a way of life,” said an official, who pleaded anonymity.
The equipment listed by the NCS management included electronic scanners, which can be used to determine the type of goods imported into the country and fast moving vehicles that can stand the rigours of anti-smuggling operations and the test of time.
They also demanded a review of policies that remain unfriendly to investors, among sundry issues.
Investigations revealed that there had been a growing speculation of under-declaration of goods by importers, who had routinely deceived government officials, thereby paying less duties on what was actually imported.
“It was in apparent consideration of the proposal submitted by the leadership of the Nigeria Customs Service that the Federal Government, through the Ministry of Finance, gave its nod for the procurement of the much needed equipment. The only caveat is that the procurement has to be in phases,” a source said.
Also, a top source in the Ministry of Finance had earlier said, “It is the view of the government that if the needed tools are provided for the men and officers of the Nigeria Customs Service, it shall logically shore-up revenue base, constrict the nefarious activities of smugglers, besides providing ease of life for the men and officers of the service”.
Experts in modern day port management say that dearth of modern equipment such as scanners has continually robbed the Federal Government of several billions of naira, because the few ones available are overstretched and they break down or get damaged most of the time.
“It is, therefore, safe and sane to infer that the government stands the risk of losing over N300 billion or more annually as a result of official neglect and non-compliance and adjustment to simple management rules”, Prof. Isaac Esema of Esema-Sod and Company said.
Esema argued that if government provided enabling environment for business conscious individuals, “it follows that the economy will rebound and revenue will also increase”.
However, several attempts to get the reaction of the NCS spokesperson, Mr. Wale Adeniyi, proved abortive.
A text message sent to his mobile phone had yet to be replied as at the time of filing this report.
