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Ogun records 65% revenue from excise duty as Customs generates N2.9bn

Ogun records 65% revenue from excise duty as Customs generates N2.9bn

ABUJA: For the first time in several years of operations, the Nigeria Customs Service (NCS) has recorded an appreciable level of increase from Central Value Added Tax (CENVAT) otherwise known as Excise Duty in the first half (H1) of 2017, generating N1.9 billion, which represents 65.7% out of total revenue of N2.9 billion made between January and June, 2017. This sudden increase of revenue collected on goods manufactured within the state could be attributed to increasing manufacturing activities and continued location of more manufacturing industries to major industrial estates across the state, which include Sango-Ota, Atan, Igbesa-Agbara, Arepo, Mowe-Ibafo, Abeokuta, Sagamu, Ijebu-Ode, Ibese, Ewekoro-Papalanto, among others.

Nigeria Customs Service Revenue Statistics in recent times shows that Excise Duty recorded in Ogun state hovered around 5% and 20% as against Customs Duty, also known as Import Duty which usually dominated Customs Revenue, representing between 75% and 95% of the total Customs Revenue monthly, quarterly or yearly as the case may be. Speaking on revenue generated between January and June, 2017 by the Ogun State Area Command of Nigeria Customs Service, Sanni Madugu, Comptroller of Customs in the state, disclosed that Nigeria Customs generated a total of N2,999,371,169.88 within the period under review, but Excise Duty represents N1,971,800,705.88 – 65.7%; while Import Duty accounts for only N710, 750,760 – 23.6%. Fees, Aution, VAT and other charges represent N316,819,704 – 10.5%. Madugu declared that although Ogun Area Command made over N4 billion revenue between January and June, 2016 when imported items like vehicles, rice and others were allowed to come into the country through land borders, the growth recorded from Excise Duty showed that President Muhammadu Buhari’s seeds on Made-in-Nigeria goods is beginning to germinate. He added since Federal Government imposed embargo on imports of some goods such as vehicles, rice, clothes and shoes,vegetable oil, frozen products, canned foods, among others through land borders, the focus of the Command had been shifted to Excise Duty, anti-smuggling activities as well as serious fight against smugglers and seizure of contraband. The Comptroller of Customs, who spoke to BusinessDay through Abdullahi Maiwada, Ogun Area Command Public Relations Officer of Customs, noted that Customs also confiscated 241 vehicles from Idi-Iroko land border as well as other items, including bags of rice, gallons of vegetable oil, frozen products such as fish and poultry foods, clothes and shoes, among others within the period under review.