The League of Maritime Editors (LOME) issued a warning to President Ahmed Bola Tinubu’s administration on Monday, urging them to reconsider the proposal of merging the Federal Inland Revenue Service (FIRS), Nigerian Customs Service (NCS), and the Nigerian Maritime Administration and Safety Agency (NIMASA) into a single agency called the Nigerian Revenue Service (NRS).
LOME criticized the proposal, stating that it was poorly conceived and would mislead the Tinubu administration while arguing that the merger would have detrimental effects, particularly the mass layoff of employees in all the agencies involved.
It described the proposal as anti-people and emphasized that its proponents failed to consider the severe consequences associated with such a merger.
In an official statement signed by Chief Timothy Okorocha, President of the League, along with Mr Felix Kumuyi, Secretary, and Mr Francis Ugwoke, Public Relations Officer, the League pointed out that the Customs Service and NIMASA have distinct statutory roles assigned to them by the laws that established them.
The statement highlighted that the Customs Service’s primary responsibility is trade facilitation at various seaports, airports, and border stations, where it collects duties on goods entering or leaving the country. It mentioned that the only duty performed by Customs that is somewhat similar to that of FIRS is the collection of excise duties as tax, but this alone does not justify the merger.
Regarding NIMASA, the release explained that the agency was established to regulate the maritime sector, overseeing ships arriving from different destinations and those operating within Nigerian territorial waters.
Additionally, NIMASA is involved in indigenous shipping development, maritime safety administration, maritime labor regulation, marine pollution prevention and control, search and rescue operations, vessel security measures, air and coastal surveillance, Cabotage enforcement, ship registration, seafarer training and certification, and marine capacity development.
The League argued that there is no significant overlap between the roles of NIMASA and FIRS or Customs that would warrant merging the three agencies. The only connection between them is the collection of a three percent levy from vessels calling at Nigerian ports for administrative purposes and promoting indigenous shipping development. Furthermore, both NIMASA and Customs contribute to the consolidated revenue fund, just like FIRS.
The statement emphasized that the current administration should avoid implementing any policies that would further burden the already distressed Nigerian population. It pointed out the high number of unemployed youths graduating every year and stressed that merging these agencies would result in more layoffs and reduced employment opportunities for Nigerian youths. The government should explore alternative approaches to managing capital expenditure in these agencies and saving money, rather than pursuing a merger.
The League provided statistics on the staff strength of the agencies involved, stating that Customs has approximately 16,000 personnel, FIRS has around 12,000 workers, and NIMASA has about 2,000 employees. If the agencies were merged into the Nigerian Revenue Service (NRS), the workforce would be reduced by more than half, creating a competitive environment where only those connected to the Presidency, governors, senators, and high-level monarchs would remain. Such a scenario would be detrimental to the economy and reflect poorly on the administration’s image.
The League advised that mergers should be considered for underperforming agencies rather than those already functioning as five-star agencies.