Tax experts have called on the federal government to exercise caution in the consideration of the Tax Reform Bills currently before the National Assembly, noting that Customs duties go beyond revenue collection.

Speaking on the issue in an interview with journalists on the sidelines of Public Hearing on Tax reforms Bills, Mr Okey Ibeke, a customs and tax expert, emphasized that the duties of the Nigeria Customs Service (NCS) are highly technical and extend far beyond revenue collection.

Ibeke described the NCS as a specialized agency requiring advanced technical skills to effectively carry out its functions.

He warned that the proposed tax reforms could undermine the agency’s specialized operations, which are critical to Nigeria’s revenue generation.

The bills under consideration include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

Ibeke expressed concerns that designated revenue agencies may lack the technical expertise, specialized workforce, and continuous training required to handle NCS operations.

He noted that these agencies might struggle to detect undervalued or misclassified goods, potentially leading to the acceptance of inaccurate import declarations.

“Customs work is more than just collecting revenue. It involves classifying cargo, understanding tariff classifications, and conducting customs valuations. Without the expertise to classify cargo and determine the applicable duty rates, there will be significant challenges. Only well-trained customs personnel can effectively perform these functions,” he explained.

He further highlighted the importance of applying Rules of Origin (RoO), which are essential for determining the national source of products.

RoO, he said, is critical for assessing the value of imports, calculating appropriate revenue, and identifying fraudulent practices—tasks that general tax administration systems are ill-equipped to handle.

Also speaking, another expert, Musa Yakubu noted that if the NCS is no longer responsible for revenue collection, it could result in reduced import duty collections.

“The NCS has already made significant strides in modernizing its operations through its Trade Modernisation Project. The deployment of the ‘B Odogwu’ software, for instance, has contributed to increased revenue collection and positioned the service to surpass its 2025 revenue target.