In an apparent move that is aimed at addressing the abuses to which it has been allegedly subjected to, the Federal Government has stopped the import duty waiver scheme; a programme that is used to encourage some categories of importers.
The decision to stop granting import waivers was reached after it was discovered that in 2011 alone, a colossal N37.2 billion was lost as a result of import waivers that were granted to importers of raw materials in that year alone.
In an apparent move that is aimed at addressing the abuses to which it has been allegedly subjected to, the Federal Government has stopped the import duty waiver scheme; a programme that is used to encourage some categories of importers.
The decision to stop granting import waivers was reached after it was discovered that in 2011 alone, a colossal N37.2 billion was lost as a result of import waivers that were granted to importers of raw materials in that year alone.
Confirming the loss last week at the budget defence session at the Senate, Deputy Comptroller General, Human Resources at the Nigeria Customs Service (NCS), Alhaji Garuba Makarfi told the lawmakers that the Presidency had directed that no import waiver be granted in the 2012 fiscal year.
Giving an insight into the effect of duty waiver on customs revenue and remunerations, he told the Senate committee on Finance that: “We lost 7 per cent of our collection to export expansion grant which is non-negotiable, this amounted to about N37.2 billion. The grant was given to export-oriented companies and local manufacturers, to export raw materials, but instead, these local manufacturers sell their certificates to dealers who then use it to import cars into the country.”
The Customs DCG disclosed that the Service collected more than N900 billion as revenue for the Federal Government in 2011.
On the services proposed expenditure for 2012, the DCG disclosed that the Customs budget is N76.06 billion, out of which N20.2 billion is for overhead and recurrent expenditure.
According to him, the Nigeria Customs Service will expend N180 million on water supplies, out of N12.8 billion capital budget. It will also devote N500 million for security votes targeted at stopping smuggling across the nation’s borders.
Makarfi also said that the Service would spend N1.24 billion on fuel to power its various generator plants as well as to cater for refreshment and officers’ welfare packages.
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