The National Association of Government Approved Freight Forwarders (NAGAFF) has urged the Federal Government to review the exemption granted to multinationals from the payment of import duty. This is even as it blamed the Finance Ministry for the seven percent drop in Customs revenue in the last four months.
Speaking with journalists in Lagos on Thursday, the National Coordinator of the 100 percent compliance Team, Alhaji Ibrahim Tanko noted that the team’s finance intelligence unit has discovered a drop of about 6 to 7 percent of customs revenue in the last four months..
Tanko accused the Ministry of Finance of creating problems for the Nigeria Customs Service which in turn has resulted in lull in revenue and imports. He stressed that this is as a result of the unfavourable policies introduced by the Minister of Finance under the present administration.
He specifically noted that the exemption of multinationals from the payment of import duty has significantly influenced the revenue drop, adding that such policies will continue to kill local industries if not reviewed.
The Compliance Team Coordinator maintained that Nigerians should not depend on importation of foreign commodities while neglecting local manufacturing industries. He charged the Ministry of Finance to encourage local industries in Nigeria.
While expressing concerns about the recent exemption of First Bank of Nigeria from non-duty payment on Form M by the Central Bank of Nigeria which is incurring demurrages on cargoes at the port, Tanko suggested that the Customs should make use of the alternative area code for zero duty payment and reconcile transactions thereafter using other banks.
In his words: “The financial intelligence section of the NAGAFF Compliance Team have observed that revenue of Customs have dropped from 6 to 7 percent. We have also identified about five issues responsible for this.
“If these issues are not addressed we may be forced to shut down the ports. It is not that we are afraid but we are only trying to be security sensitive looking at the current situation of the country and avoid the break down of law and order.
“First Bank has been suspended by the Central Bank of Nigeria. This means anyone who opens Form M under First Bank cannot make declaration. 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. 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 multinationals non-duty payment.
“We also appeal to the CGC to assist in the training of young Freight Forwarders. This is to enable them to fully understand Customs process and operations, turning them into bonafide professionals” Tanko concluded.
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