APFFLON President Marks Birthday in USA, Urges National Assembly to Rescind N12trillion Customs Revenue Target for 2025

The National President of Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite is a year older today, even as he celebrates with families, loved ones in the United States of America.

In his birthday message made available to DAILY TREND, the ever outspoken APFFLON has joined his voice to criticise the recent revenue target of N12trillion handed down to the Nigeria Customs Service by the National Assembly, saying that it is unrealistic and could cripple Nigerian economy.

Otunba Ogunojemite said “I am celebrating my birthday today in far away United States of America; but my heart, my love and birthday message is dedicated to saving the Nigerian economy from crisis occasioned by needless financial targets.

“The recent N12trillion revenue target for 2025 given to the Nigeria Customs Service (NCS) is an ill-advised recommendation and I enjoin the National Assembly to note that beyond the huge revenue generation by Customs which increases year-on-year, several Nigerian businesses are being crippled while the ordinary citizens suffer from inflated costs of services and products which have been imported and mandated to pay high Customs duties”

DAILY TREND recalls that the National Assembly through its Joint Committee on Finance significantly increased the 2025 revenue projections for the Nigeria Customs Service (NCS) during a budget defence session in Abuja, the committee raised the NCS’s initial revenue target from N6.5 trillion to a bold N12 trillion.

The Comptroller-General of the Nigeria Customs Service, Bashir Adewale Adeniyi, had earlier presented a projection of N6.5 trillion for 2025, following a robust performance in 2024, where NCS generated N6.1 trillion.

However, the committee, led by Senator Sani Musa and Hon. James Faleke, deemed the projection insufficient given the NCS’s potential.

Otunba Ogunojemite in his message further observed that, in the Nigerian port business, high customs duty can lead to several negative consequences, including increased cost of imported goods for consumers, hindering business growth, discouraging foreign investment, promoting smuggling activities, and potentially impacting the overall economy by raising inflation and reducing purchasing power.

The APFFLON President listed Key consequences of unrealistic Customs targets and high Customs duties to include;

1. Higher consumer prices:

When customs duties are high, the cost of imported goods increases significantly, which is passed on to consumers in the form of higher prices, impacting affordability, particularly for essential items.

2. Discourages business investment:

High import duties can make it difficult for businesses to import necessary raw materials and equipment, leading to higher production costs and discouraging foreign investment in the country.

3. Smuggling activities:

Nigeria Customs Service (NCS) has performed admirably in curving smuggling but a closer look at the menace according to experts can be traced to to high customs duties that incentivize smuggling. Several honest businesses and individuals try to circumvent customs regulations to avoid paying high taxes, impacting government revenue.

4. Reduced competitiveness:

Amid Nigeria’s optimism to benefit in the regional trade under African Continental Free Trade Area (AfCFTA) agreement, the pressure to generate huge revenue at ports and high import duties can make Nigerian businesses less competitive in the global market, as their products may be more expensive compared to imported goods.

5. Impact on economic growth:

By raising the cost of imports and discouraging trade, high customs duties can negatively affect overall economic growth and development.

6. Job losses:

If businesses are unable to operate efficiently due to high import costs, it can lead to job losses in the affected sectors.

Conclusion:

In light of skyrocketing customs duty rates and a staggering 150% increase in asset prices over the past year, the prospect of acquiring new assets appears daunting.

While potential relief may come from the Senate’s consideration of a bill to stabilize exchange rates for customs duties, the immediate reality remains challenging. Businesses are already grappling with the financial strain worsened by overzealous Customs activities in a bid to meet financial targets.

As businesses struggle to navigate economic uncertainties more effectively, preserving capital and maintaining operational agility, amidst these turbulent times, the smart choice is for the National Assembly to inspire Customs to tilt towards trade facilitation rather than revenue generation anchored on import duties.