The Nigeria Customs Service (NCS) Wednesday said it generated N3,206,603,417,315.47 in the year ended 2023.
This, according to the Service, marked a noteworthy 21.4% increase from the preceding year’s total revenue of N2, 641,616,673,501.83.
NCS Comptroller-General Bashir Adewale Adeniyi said this while briefing journalists at the Customs Headquarters, Abuja.
He said the growth in revenue as against 2022, aligned with the NCS’s consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022.
For the fiscal year 2024, the NCS, according to Adeniyi, was allocated a new revenue target of N5.079 trillion, aligning with the government’s economic objectives.
This target, he said, signified the government’s confidence in the NCS’s capabilities and underscored the Service’s important role in contributing to the nation’s fiscal wellbeing.
Adeniyi said: “The strategic initiatives detailed above, alongside other operational reforms, are anticipated to play a crucial role in achieving this revenue goal.
“The consecutive expansion in revenue underscores the Service’s sustained efforts in optimizing revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions.
“This achievement is particularly remarkable given the challenges within the operational environment. Operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delays in policy implementation and socio-political factors.
“The anxiety associated with a major election year, the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills, temporarily impacted purchasing power and overall economic activities.
“The transition of power to the President Tinubu-led administration brought about new policy direction, including the removal of fuel subsidy, the floating of the exchange rate, and the closure of Nigeria’s Northern borders with Niger Republic, adding another layer of complexity.
“These challenges led to a revenue shortfall of N532 billion in the first half of the year, falling short of the projected revenue target of N1.84 trillion. However, a positive transformation occurred in the later part of the year, following my appointment as the Comptroller-General in July.
“This was accompanied by a merit-based reconstitution of the management team, resulting in a significant shift that enabled the Service to exceed monthly revenue targets by 6.71% for the first time in 2023. Monthly revenue collection for the latter half of the year averaged NGN 332.9 billion, a substantial increase from the initial NGN 201.7 billion recorded in the first half of the year.
“This positive trend can be attributed to strategic measures, including the immediate establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, streamlining enforcement under the Federal Operations Unit (FOU).
“Additionally, strategic reassignments of Customs Area Controllers, the creation of an ideas bank, and extensive stakeholder engagements collectively contributed to this impressive resurgence.”
The improved revenue collection in the latter half of 2023, according to the CGC, played a crucial role in significantly reducing the revenue shortfall by 10%, decreasing from N532 billion to N478 billion by year-end.
“This calculation is based on the government’s projected revenue collection by the Nigeria Customs Service (NCS) of N3.684 trillion and the actual collection of N3.206 trillion”, he said.
Moreover, Adeniyi said the deficit in the NCS revenue collection can be ascribed to deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy.
“Specifically, the government approved a concession of NGN 2 trillion, incorporating select dutiable items under the new Tariff heading Chapter 99. This policy shift resulted in the exemption of duty payments on certain dutiable goods, previously falling within a duty range of 5% to 10%. The overarching objective of these granted waivers and concessions was twofold: to stimulate development across diverse economic sectors and to bolster the nation’s overall peace and security”, he said.
…Campaign against smuggling
The NCS, according to the CGC, sustained its vigorous campaign against smuggling and illicit trade, culminating in 3,806 seizures with a Duty Paid Value totalling NGN 16, 049,023,262.
“These confiscations encompassed a diverse array of contraband, including Arms and Ammunition, Artifacts and Antiquities, illicit drugs, expired food produce, and endangered species of flora and fauna.
“Remarkably, the NCS achieved 52 convictions, with 11 specifically linked to the illicit trade in Animal/Wildlife. Noteworthy is the international acknowledgment garnered for the Service’s efforts in combating this illicit trade in Animal/Wildlife. This steadfast commitment underscores the NCS’s dedication to protecting Nigerian society, maintaining a resolute stance against smugglers, and diligently dismantling their operations,” said the NCS boss.
…Going forward
Going forward, Adeniyi said, numerous strategic initiatives were poised to positively impact the Service’s performance in the coming months.
“These initiatives include the introduction of the Advanced Ruling system, aligning NCS operations with global best practices and meeting the recommendations of the World Trade Organisation Trade Facilitation Agreement (WTO TFA).
“Additionally, the inauguration of a Steering Committee on the Implementation of Authorized Economic Operators (AEO) for Compliant Traders underscores our readiness to transition from Fast-track 2.0 to the AEO concept. Engagements with the international community, such as those with the World Customs Organization (WCO), JICA, and Japan Customs, focused on key areas is expected to lead to the implementation of the Customs Laboratory, adoption of geospatial technology, and the conduct of a Time Release Study. Collaborative efforts with the Customs Administration of the Republic of Benin, the revitalization of zonal structures, and integration of Customs institutions into the administrative framework all contribute to NCS’s commitment to efficient service delivery and positive stakeholder relationships.
“The NCS also responded to changes in legislation, engagement with the National Trade Facilitation Committee (NTFC), initiated Corporate Social Responsibility projects, integrated efforts with the Federal Road Safety Corps (FRSC), enhanced personnel welfare programs, and introduced the Work-Life Balance (WLB) initiative.
“In the upcoming week, the NCS is set to inaugurate an electronic auction (e-auction) platform, strategically designed to enhance transparency in the auction process. These collective actions signify NCS’s dedication to enhancing staff welfare and sustaining optimal performance,” he added.
