A two time governorship aspirant in Edo State, High Chief Jacob Idinye has raised concerns over the ongoing tax reform bills, emphasizing that the Nigeria Customs Service (NCS) plays a highly technical role that extends far beyond revenue collection and should not be circumvented in playing its statutory economic duties in revenue generation.
The Edo born politician who is also a winner of over 32 different professional awards in Maritime Reporting and Customs activities maintained that the NCS as a specialized agency requires advanced technical skills to effectively carry out its functions which is the practice globally and Nigeria should not be an exception.
Idinye made this disclosure in Ibadan on Friday during a chat with some selected journalists, following a public hearing on tax reform bills organized by the Special Committee on Tax Reform Bills. “Without the expertise that will be deployed by trained Customs Officers to classify cargo and determine the applicable duty rates, there will be significant challenges within that revenue generating value chain. Only well-trained customs personnel can effectively perform these functions and thats the truth, he said.”
The celebrity journalist cautioned that the proposed reforms could undermine the agency’s specialized operations, which are crucial to Nigeria’s revenue generation. He argued that as the heated debate over the tax reform bills continues, the President and the lawmakers should work out a balanced approach that strengthens Nigeria’s tax system without compromising the critical functions of the Nigeria Customs Service.
He explained that the bills under consideration include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill should undergo proper scrutiny so that their well intentioned benefits would not be eroded.
He also noted that designated revenue agencies may lack the technical expertise, specialized workforce, and continuous training required to handle NCS operations.
He further stressed that these agencies might struggle to detect undervalued or misclassified goods, potentially leading to the acceptance of inaccurate importer declarations.
He said: “Our legislators must be very tactical in their approach as they thinker with the Tax reform Bills presented before them, and they owe Nigerians the duty of advising Mr. President accordingly so that posterity will be kind to them. Customs work is more than just collecting revenue. It involves classifying cargo, understanding tariff classifications, and conducting customs valuations. Therefore usurping their responsibilities technically through Bills like this should never be entertained by the President. NCS under the leadership of Segun Adeniyi has brought pride to that revenue generating service in tandem with its policy thrust and ultimately with the excellent vision of President Bola Tinubu’s renewed hope agenda.
“With due respect, the Federal goernment needs to establish a framework for seamless inter-agency collaboration to maximise the benefits of the reforms. Very clearly, Section 1 of the Nigerian Revenue Service Establishment Bill 2024, provides a legal framework for the administration of taxes and revenue under any law, where section 42 defines tax to include any duty and revenue accruable to the government. This particular section subsumes everything that is provided under section 3 and 4 of the Nigeria Customs Act 2023.
“Customs involves classifying cargo, understanding tariff classifications, and conducting customs valuations. Without the expertise to classify cargo and determine the applicable duty rates, there will be significant challenges. Only well-trained customs personnel can effectively perform these functions. I also urge the Federal government to increase funding for the NCS to address revenue collection challenges rather than repealing the 2023 NCS Act, which took over eight years to pass into law. The NCS has established infrastructure and is leveraging technology to facilitate trade. Repealing the Act now will undermine these efforts and hinder progress,” he said.
Idinye added, “I want to add my voice with that of other stakeholders who asked the critical and harmless questions that is the Federal Government planning to dismantle the Customs Service? Will they employ customs officers to work in the new agency? Will they create offices for them within the agency? This could lead to confusion. Ultimately, the government, which aims to maximize revenue, stands to lose the most. And there is no basis for the government to upset the applecart or reinvent the wheel. There are Customs in every country of the world and no government of those developed climes will ever undermine their statutory functions in revenue generation and other key and technical responsibilities recognized by law. The NCS has established infrastructure and is leveraging technology to facilitate trade. Repealing the Act would undermine these efforts and hinder progress in Nigeria and this should be wisely and decently dismissed.”
Idinye maintains that while the reforms align with President Bola Tinubu’s vision for a more efficient tax system, he however warned that they could negate the NCS’s ability to perform its core functions and that could be dangerous for the nation’s economy, advising that government should be circumspect at a time like this.
