Reps assure Nigerians, businesses of conducive environment for economic growth

On Wednesday, the House of Representatives assured Nigerians and the business community of its resolve to enhance trade facilitation policies, modernise customs procedures, and foster a conducive environment for economic growth and development.

Chairman, House Committee on Customs and Excise, Hon. Leke Abejide, gave the assurance during the inaugural meeting of the Standing Committee and reiterated the Committee’s resolve towards ensuring the effective and efficient operation of the Nigeria Customs Service (NCS), a critical institution that safeguards our nation’s borders and generates substantial revenue for our economy.

Hon. Abejide, who scored the 9th Assembly high for the successful repeal of the 63-year-old Customs and Excise Management Act (CEMA), 2004 (CEMA) and re-enactment of the new Nigeria Customs Service Act, 2023, expressed optimism that the legal framework will boost revenue accruing into the Federation Account.

According to him, “This groundbreaking legislation represents a significant milestone in our efforts to streamline customs procedures, enhance trade facilitation, improve revenue generation, and promote economic growth.

“As we embark on this new chapter, I want to assure you that the Committee on Customs and Excise will be steadfast in its pursuit of excellence. We will work tirelessly to enhance trade facilitation policies, modernise customs procedures, and foster a conducive environment for economic growth and development.

“We are fortunate to inherit the legacy of the 9th Assembly. incidentally, of which I was Chairman of the same Committee and the Sponsor of the Bill, which successfully repealed the 63-year-old Customs and Excise Management Act, Cap. C45, Laws of the Federation of Nigeria, 2004 (CEMA) and re-enacted the new Nigeria Customs Service Act 2023. This groundbreaking legislation represents a significant milestone in our efforts to streamline customs procedures, enhance trade facilitation, improve revenue generation, and promote economic growth.

“Under the new Act, the NCS now has access to increased revenue via a new financing model of 4% FOB, thus enabling it to operate more effectively and efficiently. The new Act also introduces a robust e-commerce system, aligning the NCS with global digital trends and promoting rapid revenue generation and ease of doing business.

“Another notable milestone of the Act is the establishment of a clear leadership structure for the Nigeria Customs Service. This is achieved by enabling a career officer, at least at the rank of Assistant Comptroller General, as the Comptroller-General of Customs, to be appointed by the President of Nigeria. This stands in contrast to the previous Act, which lacked clarity on leadership, resulting in such appointments from civilian and military backgrounds in the past.

“The 10th Assembly now has the rigorous task of ensuring that the new Act is implemented effectively and that its full benefits are realised. We will closely monitor the NCS’s performance and provide the necessary support to ensure that it operates by the highest international standards.”

In line with Order 20 Rule 28 of the Standing Orders (10th Edition), Hon. Abejide assured that the Committee will oversee the implementation of the NCS Act, 2023, by ensuring close monitoring of the service’s progress in implementing the Act and ensuring that it adheres to the principles of transparency, accountability, and efficiency.

On revenue collection and remittance, he assured that the Committee will closely scrutinise the NCS’s revenue collection and remittance processes to ensure that all customs duties and levies are promptly accounted for and remitted into the Federation Account.

While speaking on the issue of the cost of collection, he averred that the 10th Assembly “shall continue to review the NCS’s cost of collection to ensure that it is reasonable and justifiable. It is worth mentioning that the new Act introduces a more streamlined and revenue-enhancing approach. Instead of the previously imposed 7% surcharge on duty payable, the Act now mandates a 4% free-on-board (FOB) charge. This change ensures that waivers granted do not adversely impact the revenue collection targets of the NCS, leading to a projected threefold increase in income compared to the current levels.”

Speaking on the Export Processing Zones (EPZs), Hon. Abejide assured that the Committee will assume oversight of the NCS’s enforcement of regulations in Export Processing Zones (EPZs) to verify compliance with legal requirements and their contribution to economic growth. In collaboration with the NCS Excise Department, the Committee will strive to ensure automation of production lines from raw material intake to final product output to block leakages and eradicate corruption.

Speaking further on the customs and excise laws, he assured that the Committee will conduct periodic reviews of customs and excise laws to ensure that they remain relevant and effective in the face of changing economic and technological landscapes.

He also pledged the Committee’s readiness to “meticulously review the NCS’s annual budget proposals to ensure they align with the government’s comprehensive economic and fiscal policies. The NCS’s budget is self-funding, meaning it operates independently of the national annual budget to optimise its operations and efficiency. This independent financial structure enables the NCS to effectively carry out its mandate and contribute to the nation’s economic growth.

“In the face of ever-evolving trade patterns and technological advancements, our committee shall remain vigilant in addressing the challenges that lie ahead. We must strive to balance the need for revenue collection with the facilitation of legitimate trade, while also ensuring that our borders remain impenetrable to illicit goods and activities. I hereby crave the need for effective teamwork and collaboration,” he urged.

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