2024 Budget: Customs, NUPRC get additional revenue target to 6trn

Some revenue-generating agencies on Monday appeared before the house of representatives committee on appropriations, affirming their commitment to surpass the revenue projections in the 2024 budget proposal.

The Nigerian Customs Service (NCS), the Nigerian Communications Commission (NCC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) appeared before the committee and expressed readiness to increase the revenue target.

President Bola Tinubu, last month, presented a N27.5 trillion budget to the joint session of the National Assembly. The budget contained a projected revenue of N18 trillion.

However, the Committee on Appropriations has consistently maintained that government-owned enterprises (GOEs) should generate more revenue than what is projected in the budget proposal.

Nigerian customs

The Comptroller General of Customs, Wale Adeniyi, while addressing the lawmakers, said the NSC has a projected N5 trillion in revenue.

However, the Chairman of the Committee, Abubakar Bichi (APC, Kano), said NSC should be able to increase its revenue target.

“Is there any possibility to increase your target in 2024? Because I said earlier, we need more revenue and you have done very well in 2023, you have almost 90 per cent,” Mr Bichi said.

Responding to the request by the committee, Mr Adeniyi said NSC can generate an additional N1trillion if the government lifts the suspension of duty on single-use plastic and increase the duty on alcohol and tobacco.

“We are targeting N5 trillion but it is not impossible for us to make N6 trillion if some of the issues around the operating environment are talked about. If we are able to review the concession that we are going to grant in 2024, we might get there.

“At the beginning of July, excise on single-use plastics products was suspended. We believe that if the suspension is lifted, something in the region of N300 billion can be realised from single-use plastics alone.

“The excise duty on alcohol and tobacco. There is a projection to increase it to 30 per cent. I this is done, we expect that revenue will get to where we want it,” the CGC said.

NUPRC

The Executive Secretary of NUPRC, Gbenga Komolafe, in his presentation, said the commission is projecting a revenue of N5.6 trillion for the year 2024.

When asked about the possibility of increasing the projection, he said the upstream sector is currently facing multiple challenges ranging from oil theft, dearth of investment in the sector and challenges with host communities.

He stated that the Commission is seeking to increase Nigeria’s daily oil production by 300,000 barrels per day.

When pushed by the lawmakers on the actual figure, Mr Komolafe said the Commission can push its revenue target to N6 trillion.

“We have the potential to increase the current production based on the field development plans we already have. We see an incremental of 300,000 barrels.

“We are committed to achieving and surpassing the target. In terms of figure, the N5.6 trillion, we are committed to surpassing it and go toward N6 trillion,” he said.

Mr Bichi insisted that NUPRC can generate more than N6 trillion, he, therefore, tasked the agency to exceed the N6 trillion target.

“We will try our best to go above N6 trillion. We are working around the clock to achieve the national aspiration,” Mr Komolafe said.

NCC

Also appearing before the Committee, the Executive Vice Chairman of NCC, Aminu Maida said his commission is projecting N350 billion for the year 2024, of which N224 billion is to be remitted to the Consolidated Account.

Mr Maida explained that the NCC majorly generates money from spectrum licensing and annual operating levy.

He stated that the NCC is concerned about the growth of the sector instead of pushing for revenue.

“I share your desire. I pray that we will exceed the revenue target. As a regulator, we have to balance the growth of the industry. What we need to do is to let the industry grow and have more people using telecommunication, therefore, we can get more annual operating levy,” he said.

When pressed by the committee, Mr Maida said he should be allowed to check the books of the NCC to give a definite answer on a possible review of the revenue projection.

He added that the Commission will launch a revenue collection App by the second quarter of 2024. Adding that the projection will help to increase the revenue of the Commission.

“Sometime in Q1 or Q2, we are also going to deploy technology called the revenue assurance system. It will help us to collect our revenue. Right now, we depend on their management account to collect our revenue. With the software, we can actually know what exactly is due to NCC,” Mr Maida said.

In his closing remarks, Mr Bichi said the committee is prioritizing revenue generation to support the programmes in the budgets.