The Nigerian Senate has approved the sum of N1.678 trillion as revenue target for the Nigerian Customs Service for 2021.
This was disclosed by the Senate after its plenary session on Wednesday. The Senate also announced an expenditure of N257 billion for Customs.
Chairman of the Senate Committee on Customs Excise and Tariffs, Senator Francis Alimikhena, disclosed that Customs had initially proposed a revenue target of N1.46 trillion, but the Senate Committee had settled on a more adequate target, citing features in the Finance Act 2021, and expansion of excisable items.
“All these will significantly increase the revenue target of the NCS in 2021 budget year,” he said.
“In view of the foregoing not captured in the Medium Term Expenditure Framework (MTEF 2020), the committee hereby increases the NCS revenue target from N1.46 trillion to N1.678 trillion.”
The Committee Chair also said that VAT would be pegged at 2.2% while the cost of collection would be at 1.7%, adding that the expenditures would enable the Customs Service to retain earnings for ongoing projects for 2021.
What you should know
The Nigeria Customs Service (NCS) had stated that it generated a revenue of N1.5 trillion for the year 2020, a rise compared to N1.3 trillion in 2019.