The Nigeria Customs Service (NCS) has raised concerns regarding proposed tax reform bills that could jeopardize its operational independence. Comptroller General Adewale Adeniyi voiced these concerns during a public hearing at the House of Representatives, stating that the NCS could lose its revenue collection authority to the newly proposed Nigerian Revenue Service (NRS).

Adeniyi emphasized that the proposed legislation, if passed, poses a threat to the NCS’s existence and could lead to jurisdictional conflicts. He highlighted specific sections of the bills that could undermine the unique functions of customs, such as valuation and classification.

The customs chief argued that merging NCS with other tax authorities would dilute its specialized responsibilities and negatively impact national revenue. He expressed concern over the interchangeable use of the terms “tax” and “duty” in the proposed laws, noting that this oversight could have significant implications for fiscal policy and economic management.

Adeniyi recommended that rather than abolishing the NCS, there should be a framework for collaboration and integration of operations between customs and the tax authority. He cautioned that the proposed changes could disrupt the established systems crucial for effective revenue generation.

As the public hearings continue, the outcome of these reforms remains uncertain, with significant implications for the structure of Nigeria’s revenue collection system.