The Nigeria Customs Service, on Wednesday, assembled its top management staff from all over the country to deliberate on how to generate the N5.079tn revenue target allocation to the agency by the Federal Government in 2024.
All the management personnel of the service met at the headquarters of the NCS in Abuja, where the Comptroller-General of Customs, Adewale Adeniyi, outlined some of the measures to be deployed by the agency to meet the target.
Speaking at a press briefing, the Customs boss said, “For the fiscal year 2024, the NCS has been allocated a new revenue target of N5.079tn, aligning with the government’s economic objectives.
“This target 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 alongside other operational reforms, are anticipated to play a crucial role in achieving this revenue goal. We have assembled our top management from all over the country to deliberate on the strategies that we are going to employ to achieve this objective.”
Some of the strategic initiatives to positively impact the service’s performance in the coming months, according to Adeniyi, 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.
“Additionally, the inauguration of a Steering Committee on the Implementation of Authorised Economic Operators for compliant traders underscores our readiness to transition from Fastrack 2.0 to the AEO concept,” he stated.
Adeniyi, who further outlined other measures at the briefing, also noted that “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.”
Commenting on the African Continental Free Trade Area, he said Nigeria’s pivotal leadership role in the AfCFTA was underscored by its distinction as the largest and most populous country in Africa, boasting a significant industrial presence.
“Notably, Lagos alone contributes substantially, accounting for 80 per cent of Africa’s Cultural Services export. The inception of the Guided Trade Initiative on October 7, 2022, saw over 30 countries participating, with Customs assuming a leading role in the implementation of the AfCFTA,” he stated.
Meanwhile, Adeniyi stated that the NCS sustained its vigorous campaign against smuggling and illicit trade in 2023, culminating in 3,806 seizures with a Duty Paid Value totalling N16,049,023,262.
“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,” he stated.
Adeniyi also officially announced that the Customs revenue grew by 21 per cent in 2023 to hit N3.21tn, describing it as the agency’s highest revenue ever, as the achievement was remarkable given the challenges within the operational environment.
“In the fiscal year 2023, the NCS achieved a significant milestone by recording a total revenue collection of N3,206,603,417,315.47, marking a noteworthy 21.4 per cent increase from the preceding year’s total revenue of N2,641,616,673,501.83.
“This growth aligns with the NCS’s consistent upward trajectory, as evidenced by a 17.88 per cent revenue increase in 2022. The consecutive expansion in revenue underscores the service’s sustained efforts in optimising revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions,” he stated.
On the operational challenges faced by the NCS, Adeniyi said they include lower transaction volumes, compliance issues, inadequate infrastructure, adding that capacity gaps were compounded by delays in policy implementation and sociopolitical factors.
He explained that the anxiety associated with a major election year and 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 N532bn in the first half of the year, falling short of the projected revenue target of N1.84tn. 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 per cent for the first time in 2023,” the Customs boss stated.
Adeniyi noted that monthly revenue collection for the latter half of the year averaged N332.9bn, an increase from the initial N201.7bn recorded in the first half of the year.
He said the improved revenue collection in the latter half of 2023 played a crucial role in reducing the revenue shortfall by 10 per cent, decreasing from N532bn to N478bn by year-end.
“This calculation is based on the government’s projected revenue collection by the Nigeria Customs Service of N3.684tn and the actual collection of N3.206tn.
“Moreover, 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 N2tn, 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 five per cent to 10 per cent,” Adeniyi stated.
