By: George Ozalla
-Abuja Nigeria
The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adeniyi, has raised concerns that the proposed tax reform bills being considered could create jurisdictional conflict and effectively exterminate the agency.
Speaking at a Public Hearing organized by the House of Representatives Committee on Finance with the support of Policy And Legal Advocacy Center (PLAC) on Wednesday, Adeniyi presented key objections outlined in a 17- page memorandum, maintaining that the bills, if passed in their current state, could override existing laws, including Nigeria Customs Service Act of 2023.
Adeniyi specifically cited Section 1 of the Nigerian Revenue Service Establishment Bill 2024, which provides a legal framework for tax and revenue administration under any law, while Section 42 defines tax to include all duties and revenues accruing to the government.
Adeniyi further argued that this provision effectively absorbs the functions of the NCS as outlined in Section 3 and 4 of the Nigeria Customs Service Act 2023, thereby undermining the Agency’s legal foundation.
He further pointed to provisions of Sections 23, 29, and 41 of the Joint Revenue Bill as areas of potential jurisdictional conflict.
“Basically, these are jurisdictional conflict issues. Section 1 of the Nigerian Revenue Service Establishment Bill seeks to completely legislate the Nigeria Customs Service out of existence, if you pardon my words”, Adeniyi remarked.
Adeniyi expressed serious concerns over Section 4 of the Revenue Service Bill which grants the proposed Nigerian Revenue Service (NRS) sweeping oversight functions over all taxes and levies.
Such provisions can nullify previous legislations carefully designed to economic and trade-related issues.
In his response, he urged lawmakers to ensure that any new revenue related legislation promotes active collaboration rather than eliminating the Customs Service.
“The principal recommendation we made was to encourage collaboration and integration of operations between Customs and Tax Authorities and not to abolish Customs or repeal the law just because a new one is being considered”, Adeniyi said.
Reiterating the extensive resources and efforts invested in enacting the Nigeria Customs Service Act less than two years ago, he appealed to the National Assembly to allow the law to stand.
“Our prayer is simple, a lot of huge resources have gone into enactment of Customs Service Act 2023, less than two years ago. We plead with the Assembly to let the law stay”. he urged.
Adeniyi Speaking further on Friday during the last day of the Public Hearing believed that pragmatic foreign exchange earning, policy and regulation will enhance sound economic stability.
“Sound foreign exchange will address the the gaps in local production and to ensure that foreign exchange needed for local production was sourced, so the basic objective is the transfer of foreign direct investment and technology transfer in the hope of export, so in a way they are all strategies for economic development. In Nigeria the bigger framework was provided under NEPZA Act of 1992 which itself was an offshoot of decree because the idea was actually first promulgated under the decree 1992 and when you see the areas covered by free Zone operations and the objective is very clear”.
