…Targets ₦5.079trn in 2024
The Comptroller-General of Customs, Bashir Adewale Adeniyi Wednesday said the Service in 2023 generated ₦3,206,603,417,315.47, marking a noteworthy 21.4% increase from the preceding year’s total revenue of ₦2,641,616,673,501.83.
Adeniyi, who disclosed this in his press briefing at Customs Headquarters, Abuja said, the growth in revenue as against 2022, aligns 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 CGC Adeniyi, has been allocated a new revenue target of ₦5.079 trillion, aligning with the government’s economic objectives.
This target, he said, signifies the government’s confidence in the NCS’s capabilities and underscores the Service’s important role in contributing to the nation’s fiscal wellbeing.
“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 ₦532 billion in the first
half of the year, falling short of the projected revenue target of ₦1.84 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”, Adeniyi explained.
The improved revenue collection in the latter half of 2023, according to CGC, played a crucial role in significantly reducing the revenue shortfall by 10%, decreasing from ₦532 billion to ₦478 billion by year-end. “This calculation is based on the
government’s projected revenue collection by the Nigeria Customs Service (NCS)
of ₦3.684 trillion and the actual collection of ₦3.206 trillion”, he said.
Moreover, according to the anti-smuggling czar, the deficit in 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.
The NCS, according to 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”.
Going forward, Adeniyi said, numerous strategic initiatives are 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
Organization 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 Fastrack 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”.
