Customs remits N653.47b to Fed Acct

The Nigerian Customs Service (NCS), said it has remitted N653.47 billion  into the Federation Account between January and November 2018.

The NCS which presented  the report to the  Federation Account Allocation Committee (FAAC), last week, said the amount was generated from six major revenue sources, namely: Import duty where N553 billion was realised between January and November; Excise duty where N53.63 billion was made;  Fees brought in, N2.42 billion; Auction sales generated N803.24 million;  Penalty Charges fetched N996.24 million and Special levy generated N44.42 billion into the nation’s purse.

The report revealed that  N58.37 billion was remitted into the federation account in January, while February, March and April recorded remittances of N48.06 billion, N52.48 billion and N58.45 biliion respectively.

The month of May, saw receipts of N58.65 billion flowing into government account, while N61.45 billion, N55.79 billion, N63.81 billion came in the month of June, July and August respectively. In September, the NCS paid N62.21 billion into the coffers, while N67.02 billion and N67.12 billion was paid into the federation account in October and November respectively.

The report which was prepared and signed by Ibrahim, S.I. for Comptroller-General, NCS indicatted that “the collection of N64,793,029.05 in the month of November, 2018 accounted for 91.63 per cent of the 2018 approved monthly budget of N70,710,977,858.08. This is lower than the October 2018 collection of N67,351,872,142.87 by N2,558,842,964.82 or 3.8 per cent.”

Ibrahim attributed this development “to decrease in the volume of dutiable imports and excise duty in the month under review relative to the preceding month.”

In the report, Ibrahim stated that “the transfer to the federation account by the Central Bank of Nigeria for the month amounted to N67,127,207,831.3, while charges deducted by the designated banks was N19,437,908.75.”

The Federation Account Allocation Committee (FAAC), is headed by the Minister of Finance, Mrs Zainab Ahmed, who serves as the Chairman. The Committee is  also made up of commissioners of finance from the 36 states of the federation;  the Accountant General of the Federation, and representatives from the Nigerian National Petroleum Corporation (NNPC); the Federal Inland Revenue Service (FIRS); the Nigerian Custom Service (NCS); Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC); the Central Bank of Nigeria (CBN); the Federal Ministry of Solid Minerals Development and other critical stakeholders with interests in the federation account.

The framework guiding the mangement of the federation account demands that funds be shared under three major components-statutory allocation, Value Added Tax distribution; and allocation made under the 13% derivation principle oil producing states. The beneficiaries are the three tiers of government: federal, state and local governments; the FIRS, Department of Petroleum Resources (DPR) and the NCS who go home with costs of collection of 4%, 4% and 7% respectively.