Buhari’s Waivers Hit Hard: Customs Registers N1.3 Trillion Revenue Plunge in 2023

Infostride News reports that the Nigeria Customs Service (NCS) has disclosed that the waivers and concessions granted to investors during the tenure of former President Muhammadu Buhari’s administration led to a substantial financial loss amounting to N1.3 trillion. This revelation came to light during a public hearing on the 2024–2026 medium-term expenditure framework and fiscal strategy, where Deputy Comptroller General Mba Musa addressed the Senate joint committees.

Representing the Comptroller General (CG), Adewale Adeniyi, DCG Musa underscored the significant impact of these concessions on the potential revenue that could have been added to Nigeria’s consolidated revenue fund in the fiscal year 2023. He expressed concern over ongoing concessions, stating, “By now we shouldn’t be talking about concessions for cement manufacturers; we should not even be talking about sugar importation. We should not deny ourselves revenues that we should generate to make our economy vibrant.”

DCG Musa emphasized the need to review the existing waivers and make appropriate recommendations. He pointed out that if there were no concessions, the NCS should have been meeting its projected revenue targets. According to him, the NCS incurred a loss of N1.3 trillion in 2023 due to the waivers and concessions granted by the Buhari administration.

In response to the agency’s submission, Sani Musa, the chairman of the joint committee, called for a Senate probe into the waivers and concessions. He emphasized that such concessions should not impede revenue generation, which is crucial for the country’s economic growth.

Moreover, the Senate sought clarity on the NCS modernization project, known as e-customs, and requested details of the agreement signed by the federal government. However, Adewale Adeniyi stated that the service lacks access to specifics regarding the $3.2 billion modernization project agreement. “We are not privy to details of the modernization agreement of the Nigeria Customs Modernization Project,” Mba told the federal lawmakers.

Providing more insights into the Customs modernization project, it was approved for implementation during the administration of former President Muhammadu Buhari. The approval included entrusting the project to a concessionaire, with Bergman Securities Consultant and Suppliers Limited serving as the project sponsor, Africa Finance Corporation UFC as the lead financier, and Huawei Technologies designated as the lead technical service provider.

Despite these approvals, stakeholders have expressed concerns about the project, arguing that it poses a threat to national security and amounts to mortgaging the future of the Customs service. During the joint session with the Senate committee, DCG Musa reiterated that the NCS was not privy to the details of the modernization agreement, raising further questions about transparency and accountability in the execution of such crucial projects.

The call for a Senate probe reflects the growing need for a comprehensive examination of the decisions and agreements that have shaped the NCS’s financial landscape. The concerns raised by both the Deputy Comptroller General and the Senate committee underscore the importance of balancing concessions with the imperative of revenue generation for economic vitality.

As the investigation unfolds, it will be crucial to assess the impact of past concessions on the NCS’s revenue targets and the overall economic health of Nigeria. The lack of access to details regarding the modernization project agreement raises broader questions about the transparency and oversight mechanisms in place for major government initiatives.

In conclusion, the revelation of the NCS’s financial loss due to waivers and concessions highlights the need for a thorough investigation into the decision-making processes and agreements that have shaped the economic landscape. Infostride News will continue to monitor and report on developments related to this issue as the Senate probe progresses and more information becomes available.