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Home General Passing Tax Bills Without Adjustments May Cripple Customs – Expert
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Passing Tax Bills Without Adjustments May Cripple Customs – Expert

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Prnigeria
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February 27, 2025

Passing Tax Bills Without Adjustments May Cripple Customs – Expert

A customs and tax expert, Mr. Okey Ibeke, has warned that the proposed tax reform bills could render the Nigeria Customs Service (NCS) redundant if necessary adjustments are not made.

He made this statement on Thursday in Abuja after a public hearing on the bills organized by the Special Committee on Tax Reform Bills.

Ibeke emphasized that the NCS is a highly technical agency whose duties extend far beyond revenue collection.

He cautioned that the bills, if passed in their current form, could strip the NCS of its core responsibilities, thereby weakening its operational capacity.

“The work of the Nigeria Customs Service is not just about collecting duties. It involves classifying goods, applying tariff classifications, and ensuring accurate customs valuation. If these bills are passed without critical modifications, customs officers may lose their authority over these crucial functions, leading to revenue losses for the government,” Ibeke said.

He warned that transferring customs revenue functions to general tax agencies that lack the required expertise could compromise Nigeria’s trade regulation system.

“Only trained customs officers have the technical knowledge to apply Rules of Origin (RoO), verify import values, and detect undervaluation. Without this expertise, Nigeria’s trade system could face serious challenges,” he added.

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The tax reform bills under review include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

While Comptroller-General of Customs Adewale Adeniyi has assured that the reforms align with President Bola Tinubu’s vision for an efficient tax system, Ibeke stressed that failing to adjust the bills to accommodate the specialized role of customs could cripple the agency.

He further pointed out that the NCS has made significant progress in modernizing its revenue collection through initiatives like the Trade Modernisation Project and the deployment of the ‘B Odogwu’ software. Instead of weakening the NCS by altering its mandate, he urged the government to strengthen its operations through increased funding and support for the full implementation of the 2023 NCS Act.

“If the NCS Act, which took over eight years to pass, is repealed or altered without careful consideration, it will reverse progress and create confusion in Nigeria’s trade system. The Federal Government should focus on strengthening customs operations rather than dismantling a system that is already working,” he said.

As the debate over the tax reform bills continues, stakeholders are calling for necessary adjustments to ensure that the final versions do not undermine the critical functions of the Nigeria Customs Service, which plays a key role in trade regulation and national revenue generation.

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