…As stakeholders call for synergy to avoid jurisdictional conflicts
By Uche Usim
The Comptroller General of the Nigeria Customs Service (NCS), Adewale Adeniyi, has emphasised the critical role of the tax reform bills in driving national development, even as he highlighted their potential to enhance revenue generation, streamline trade processes and strengthen economic stability.
Speaking at the public hearing on the tax reform bills organised by the House of Representatives Committee on Finance on Wednesday, he harped on the need for collaborative efforts to ensure the successful implementation of these reforms.
He noted that well-structured tax reforms would not only boost government revenue but also create a more business-friendly environment by eliminating bureaucratic bottlenecks and fostering compliance.
He said: “The principal recommendation we made was that we should encourage collaboration, integration of operations between Customs and the tax authority”, he said.
Stakeholders corroborated Adeniyi, when as they stressed the importance of clear policy coordination, warning that overlapping mandates between tax authorities and implementing bodies could lead to inefficiencies, delays and avoidable jurisdictional disputes.
They urged the government to establish a framework for seamless inter-agency collaboration to maximise the benefits of the reforms.
They pointed to Section 1 of the Nigerian Revenue Service Establishment Bill 2024, which 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.
They added that this particular section subsumes everything that is provided under section 3 and 4 of the Nigeria Customs Act 2023.
A Customs and tax expert, Mr Okey Ibeke, said that the duties of the Nigeria Customs Service (NCS) is not only limited to revenue collection but involves highly technical operations.
He described the NCS as a specialised agency requiring advanced skills to effectively carry out its functions, adding that the proposed tax reforms could undermine its other specialised and critical operations.
“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,” he explained.
He urged 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.
Also highlighted were Sections 23, 29 and Section 41 of the Joint Revenue Bill, which have jurisdictional conflict issues.
They also noted that Section 4 of the Revenue Service Bill provides another omnibus provision, as it gives the proposed NRS oversight functions over all taxes and levies.
On October 3, 2024, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.
The proposed legislations include the Nigeria tax bill, tax administration bill, and the joint revenue board establishment bill.