Guarding turf
Nigeria Customs warns of agency disappearing amidst President's $36.6 billion budget signing
Nigeria Customs Comptroller General Bashir Adeniyi warns that the proposed Tax Reform Bills could dismantle the agency, citing conflicts with the Nigeria Customs Service Act 2023. He urged lawmakers to prioritise collaboration over abolition. Meanwhile, President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law, nearly doubling the 2024 budget. The National Assembly increased the initial ₦49.7 trillion proposal before approving it on 13 February. The budget includes ₦3.65 trillion in statutory transfers, ₦13.64 trillion in recurrent expenditure, ₦23.96 trillion in capital expenditure, and ₦14.32 trillion for debt servicing, with a deficit-to-GDP ratio of 1.52%.
We disagree with CG Adeniyi’s submission. The new bill does not dismantle the Nigeria Customs Service (NCS). Rather, it removes its revenue collection function and transfers it to a new agency—an approach we have long advocated for. This reform will allow the NCS to focus on its core responsibilities: facilitating smooth trade and ensuring border security.
Unfortunately for the CG, but perhaps fortunately for Nigerians, tax reforms are a key pillar of President Tinubu’s agenda, and we are confident he will take all necessary steps to ensure their passage. The proposed Tax Reform Bills do not seek to legislate the NCS out of existence. Instead, they will streamline its role by shifting tax and duty collection to the newly created Nigeria Revenue Service, allowing the Customs Service to concentrate on enforcement.
Currently, the NCS functions similarly to the UK’s His Majesty’s Revenue and Customs (HMRC), which combines tax, payments, and customs duties. However, Nigeria already has the Federal Inland Revenue Service (FIRS) handling tax collection, creating a duplication of roles. Under the proposed reforms, the NCS will take on a role comparable to the United States Customs and Border Protection, focusing on trade facilitation and border security, while the Nigeria Revenue Service handles all tax and duty collection.