Group charges finance ministry to review duty exemption granted multinational companies

,,,Says Customs should not be blamed for revenue lull.

A group known as 100 percent Compliance team, an arm of the National Association of Government Approved Freight Forwarders (NAGAFF) has blamed the federal ministry of finance for the dwindling revenue accrued to the Nigeria Customs Service (NCS) in the last four months.

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The group which adduced the lull to the duty exemption granted to multinational companies, called on the ministry to review the duty exemption for local industries to grow

Coordinator of the group, Alhaji Tanko Ibrahim at a press briefing on Thursday, bemoaned that the NCS had lost 6 to 7 percent of its revenue due to the exemption and.other factors.

As a result, he charged the federal ministry of finance to look for a way of encouraging local industries to grow.

According to him, the revenue generation of the Customs has dropped by 6-7 percent in the last four months of the year, 2023.

The group’s Coordinator said the policy of the ministry is responsible for the lull in Customs revenue even as he called on the ministry to stop blaming the Service for the drop.

Alhaji Ibrahim noted that the multinationals are abusing the window granted to them saying the government should review the policy for the local industries to be able to find their feet.

His words, “We have tried to make the minister to understand why revenue collection of Customs is dwindling and we are calling on the minister to review the exemption of multinational companies from duty payment.”

He maintained that the duty exemption granted to the multinational companies would have help to boost the revenue of the Customs.

He advised that Nigerians should not concentrate on importation of goods into the country and neglect local manufacturing industries.

Speaking further, Tanko asked the government to adopt the alternative area code available for payment of duty as First Bank of Nigeria has been suspended from opening Form M for allegedly failing to remit some money to the Central Bank of Nigeria.

He added that another cause of revenue lull in Customs is the apprehension by importers over change in government saying the importers do not know the new policies that the new government will come up with.

The NAGAFF Chieftain who also doubles as Deputy President reiterated that “The first bank non duty collection also contributed to the drop in revenue. We suggest the alternative area code to zero duty payment and reconcile transaction thereafter using other banks.

“Due to the impending change in government,importers are afraid of bringing in goods,not sure of the new administration policies.

However, the NAGAFF Compliance Task Team appealed on the Comptroller General of Customs to assist in the training of freight agents pointing out that capacity building will help young freight forwarders to facilitate trade.

Tanko recalled that the NAGAFF Academy has contributed in the training of freight forwarders adding that manpower development will further enhanced customs clearance processes and procedures.

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