The Nigerian Senate strikes: “The Nigerian Senate has informed the Nigeria Customs Service (NCS) of a need for a potential upward revision of the agency’s revenue target for 2024. This move comes amidst growing concerns about the country’s escalating debt and its impact on the cost of living.”
I will just ask the Senate to add one provision: 80%-20% where the bulk of Customs’ revenue must come from export and not import. I know that today, more than 99% of revenue is coming from taxing imports. In other words, that our Customs is growing its revenue base is a poison pill for Nigeria. Simply, it means we are not making anything in Nigeria, but importing everything.
Please do not attack me; I have been making this point for years that there is nothing exciting that Customs is breaking yearly revenue targets since it is nothing but discovering clever ways of taxing imports, and inflating the costs of products in the nation.
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As I have written here since about 2017 when I came back fully to LinkedIn, there is a clear correlation between increase in Customs revenue and de-industrialization rate in Nigeria. In other words, that P&G will fold its factories in Nigeria, and then begin to export to Nigeria, making it possible for Customs to “earn” more fees, does not make us a better country. When Michelin folded in PHC, it did not stop us from using Michelin tyres. What happens now is that we have to import the tyres – and as that happens, our Customs revenues will go up!
So, the Senate must not just give a revenue target but a distribution of the makeup of the revenue on import and export duties! If they increase the export component, we could be forced to find ways to make things locally for export.
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Have we modelled a link between increased Customs revenue and improved living standards of Nigerians? Do we just wake up here and think whenever more money is required to service debts, the next thing is to ask Customs or another agency to bring more money? What manner of people really dominate Nigeria’s political leadership? We seem to have too many cow heads parading as political leaders here. This was how we borrowed ourselves into underground, now we are trying to create more problems in the name of trying to service debts from misguided borrowings.
The increased revenue target from Customs is expected to come from where, blocking leakage or raising rates on the existing sources? This inability to think and innovate has become a national identity. Whenever resources are needed, the only thing running through our minds and heads is where to extract or steal from, without ever thinking of adding value.
Our political space is filled with mediocres, Nigeria cannot advance with the quality of people running her affairs. No, they are too empty to function reasonably well. This is treasonous.