Uwaleke Advocates Review of Customs and Revenue Funding

Prof. Uche Uwaleke, a financial economist and President of the Capital Market Academics of Nigeria, has urged the National Assembly to conduct a comprehensive review of the funding framework for the Nigerian Revenue Service (NRS), Nigerian Customs Service (NCS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

He pointed out that Nigeria operates one of the highest cost-of-collection regimes among developing economies, with costs ranging from 4 to 7 percent, compared to the global average of about 1 percent. Uwaleke emphasized the need for a detailed examination of operational costs, expenditure patterns, and international benchmarks.

He proposed legislative reforms to reduce retention ratios by approximately 50 percent, suggesting a reduction from 4 percent to 2 percent for both the NRS and NUPRC, and from 7 percent to 3.5 percent for the NCS. This reform would still keep Nigeria above international averages while increasing revenues to the Federation Account.

Uwaleke's call for reform is based on the necessity to balance operational funding and public financial protection.