Customs collects N557bn in 8 months

The total revenue which the Nigeria Customs Service (NCS) collected from January to August this year was N557.083billion.

According to the summary of monthly revenue figure obtained by SHIPS & PORTS DAILY last week, the revenue collection rose from N75.6 billion in July to N95.7billion in August. In June, the service collected N72.7billion, May N57.3, April N57.3 billion, March 61.2billion, February N62.8 billion and N74.3billion in January.

The total import duty in cash in the eight months under review was N286.7billion, while the total Negotiable Duty Credit Certificate (NDCC) in non-cash receipt was N203 billion. In the period under review, the NCS said that it collected N28 billion from excise duty, N1.1 billion fees, and recorded N57.9billion federation account levies.

The NCS said it collected N73.3billion into the non-federation account and N109billion as Value Added Tax (VAT).

Customs National Public Relations Officer, Deputy Comptroller Wale Adeniyi said the rise in revenue was due to the new foreign exchange regime applied by the Service following the floating of the naira by the Central Bank of Nigeria (CBN).

“As you would expect, there was a change in foreign exchange regime. It was a review of the foreign exchange rate which was reviewed by the CBN. And we are using the extant rate applicable to compute the value for the payment of customs duties.

“We used the advelorem system- meaning that what you are going to pay for duty is a total of the cost and the freights. And it was calculated using the exchange rate that is applicable. So you expect once there is a change in that rate there is also a change in the value.

“We started this new policy in July and this is already affecting revenue situation in August. In practical terms it means that the total landing cost for these goods in Nigeria has increased. Though the rate of duty has been constant, there hasn’t been any revision in the rate of duty because there is a higher cost of value it has translated to a higher duty,” Adeniyi said.

 



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