The House of Reps Committee on Finance has rejected the N1.33 trillion target revenue by the Nigerian Customs Service (NCS) for the 2022 fiscal year.
The Reps committee at its 2022 to 2024 Medium-Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) interactive session with Ministries, Departments, and Agencies (MDAs) said the amount was low.
Leke Abejide (SDP-Kogi) said that with the recent devaluation of the naira, he expected that the proposal of the NCS should be N2 trillion and above.
He said the exchange rate for 2021 was N381 to a dollar and the targeted revenue generation was N1.6 trillion, adding that the service should factor in the devaluation of the naira and increase their target.
The lawmaker said the service would still surpass an upward review target; adding that the new Finance Act had empowered the service; to generate more revenue from alcoholic beverages and tobacco as against 2021.
Ahmed Muhktar (APC-Kaduna State) said that customs should be able to generate more revenue; following the ongoing deployment of technology in revenue collection.
He said that with the number of training and retraining lined up in the NCS budget; the service should be able to generate much more than N1.33 trillion.
According to him, the Reps committee will not accept anything less than N3 trillion.
The Chairman of the Committee, James Faleke (APC-Lagos State), said that at the beginning of every year; the Budget Office takes a critical look at the expected revenue generation of the country.
He said that was done to know the required funds and make adequate preparation for borrowing; noting that if more revenue was generated, the amount of money to be borrowed would reduce.
“We are saying no, that your gross revenue generation is low given all the available opportunities that you have; when you also look at your previous performance 2020 to 2021.
“For us as a committee on finance, we will not accept the N1.3 trillion; I am sure by the time our report comes out, you will be pleasantly happy,’’ he said.