The House of Representatives Committee on Finance has said the Nigeria Customs Service revenue projection of N1.3trn for 2022 is too small, directing that the projected target be raised.
The Comptroller-General of NCS, Col. Hameed Ali (retd.), had made the revenue projection during the ongoing public hearing on the 2022/2024 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Ali said the Customs came up with N1.3trn because it is realistic.
“We came up with a figure that is realisable. Then, whatever comes thereafter, we hope that we will surpass that. We try to be as realistic as we can in our proposal,” he said.
Members of the committee were not impressed and declared that the projection is too small.
Chairman of the House Committee on Customs and Excise, Leke Abejide said the revenue target is ridiculous with the recent devaluation of the Naira.
Abejide who is also a member of the Committee on Finance said that he had expected the Customs’ proposal to be N2.5trn and above.
“This is very ridiculous because now, the naira has been devalued already. So, you will discover that the volume of money you are getting, if you want to get the real value, you will see that it is not a real improvement,” he said.
Another member, Muktar Ahmed, insisted that the committee would not accept a revenue projection of less than N3trn from the Customs.
Chairman of the committee, James Faleke, in his final take, said, “For us as a Committee on Finance, we will not accept the N1.3tn. I am sure that by the time our report comes out, you will be pleasantly happy.”
The Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP) is a major feature of the annual budget preparation cycle. It provides the basic structure for the Estimates and assumptions for the annual budgets. It is designed to facilitate several important outcomes: greater macroeconomic balance; improved allocative efficiency – inter and intra-sectorial resource allocation; greater budgetary predictability for line ministries; and more efficient use of public funds.
