By Esther Akaa
The Senate has approved the sum of over N257.18 billion as budget for the Nigeria Customs Service (NCS) for the 2021 financial year.
The Senate’s approval, according to a press statement issued on Wednesday by the Special Assistant (Press) to President of the Senate, Ezrel Tabiowo followed the consideration of a report by the Committee on Customs, Excise and Tariffs.
The Chairman of the Committee, Senator Francis Alimikhena (APC, Edo North) during his presentation on Wednesday, said out of the amount budgeted for the Customs in the 2021 financial year, the sum of N99,719,722,681.71 would be for Personnel Cost; N19,530,769,000.00 for Overhead; and N137,933,180,013.00 for Capital Cost.
Senator Alimikhena while giving a breakdown of the revenue framework, said the Committee increased the NCS revenue target from N1,465,345,719,428.00
“In the 2021 fiscal year, NCS revenue target was pegged at N1.465 trillion comprising of N1.267 trillion for Federation Account and N197.996 billion for Non-Federation Account, respectively. However, the Senate Committee deemed this target to be inadequate, while taking cognizance of the recently assented Finance Act, 2021.
“Other factors such as expansion of excisable items, excise duties of carbonated drinks; tariff review on vehicles; re-opening of border; and projected increase on collectible duty of imports informed the upward review of revenue target for the NCS.
“Expected revenue are from seven percent cost of collection for 2021 projected at N111,573,991,091; two percent VAT share of NCS – N7,500,000,000; sixty percent share of CISS – N47,007,935,827; and Retained Earnings for Ongoing Projects, 2020 – N91,101,744,776.51,” the statement noted.