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Nigeria Customs’ Q1 revenue hits N1.34tr

The Nigeria Customs Service (NCS) disclosed yesterday, that it generated a total of N1.34 trillion revenue into the Federal Government coffers in the first quarter (Q1) of this year.

Its Comptroller-General, Bashir Adewale Adeniyi disclosed this during Q1 operations review in Abuja.

According to the CGC, the amount represents a substantial increase of 122.35 per cent compared to the same period last year.

Adeniyi also identified non-compliance with regulations, infrastructure limitations, and a notable decline in cargo throughput, evidenced by a 4.89 per cent decrease in the volume of transactions handled as some of the challenges confronting the Service.

He also identified the significant fluctuations in exchange rates applied in the Customs clearance of consignments that are posing considerable difficulties.

As per protocol, the exchange rate utilised by Customs in the clearance of goods via the Nigeria Integrated Customs Information System (NICIS), he said, is based on the rate determined by the Central Bank of Nigeria (CBN).

He noted also that the Service is perfecting arrangements with the CBN to stabilise the exchange rate for import declarations, further enhancing predictability and facilitating trade operations.

Despite these challenges, Adeniyi said the Service is steadfast in prioritising transparency and accountability in all our operations, reaffirming our dedication to serving with integrity and excellence

He said: “In the first quarter of 2024, the NCS demonstrated remarkable performance in revenue collection. Total revenue collected during this period amounted to N1,347,675,608,972.75. The collection for the first quarter represents a substantial increase of 122.35 per cent compared to the same period last year, where N606,119,935,146.67.

"When compared to the Federal Government’s annual revenue target of N5.07 trillion, he said the target translates to a monthly revenue target of N423 billion.

“We are pleased to report an average monthly revenue growth of 6.2 per cent over the set monthly target and a cumulative revenue collection of 18.6per cent, equivalent to N78,675,608,972.75 over the set quarterly target of N1.269 trillion.”

Adeniyi, also added that the NCS recorded a total of 572 seizures, encompassing various items valued at N10.6 billion in Duty Paid Value (DPV) during the period under review.

“Notably, January saw 111 seizures amounting to N842,992,751.50 in DPV, while February marked the highest seizure numbers of 432, totaling N3,704,703,350.34. Rice constituted 39 per cent of the seizures, followed by petroleum products at 26 per cent, with motor vehicles and textiles accounting for nine per cent and six per cent of the seizures, respectively,” he said.

He added that about 22 suspects were detained, assuring that appropriate legal measures would be taken in accordance with the Nigeria Customs Service Act 2023.

The Customs boss harped on trade facilitation, saying it remained a central focus of the NCS operations.

Despite inherent challenges, Adeniyi said the NCS has diligently worked towards streamlining processes, minimising bottlenecks, and optimising efficiency across the ports to ensure seamless trade transactions.

According to him, the NCS processed a total of 311,492 Single Goods Declarations (SGDs) for imports, reflecting the volume of import transactions handled within the period under review. This figure indicates a decrease compared to the total volume of 327,491 processed in 2023 and 403,233 SGDs in 2022.

“Regarding export transactions, a total of 10,786 SGDs were processed in 2024 compared to 9,752 transactions in 2023, representing a 10.60 per cent growth in export activities. Notably, a significant portion of this growth occurred in January, with 4,067 transactions processed in 2024 compared to 3,352 SGDs in 2023, marking a 29.69 per cent increase.

“The Service is particularly interested in the growth of the non-oil export sector, aligning with the priorities of the President Bola Ahmed Tinubu led administration and the initiatives pursued by NCS in recent times,” he stated.

He acknowledged the dedication and efforts of the officers and men of NCS who have worked tirelessly and around the clock to ensure consistent and upward momentum.

Adeniyi said the Customs generated a total revenue of N1.6 billion from the e-auction in February and March 2024.

He commended the support of the government, particularly in approving initiatives aimed at fulfilling the mandate of Customs. “Among these initiatives, notable is the granting of a 90- day window to owners of uncustomised vehicles, facilitating the payment of appropriate duties on previously imported vehicles into the country. Members of the public are strongly advised to avail themselves of this opportunity to regularize their papers, as failure to do so will result in applicable penalties,” he stated

Adeniyi said the government’s decision to reopen the Northern Borders with Niger Republic holds significant importance.

“This action is expected to boost trading activities in those areas. With potential smugglers now reconsidering the legitimacy of trading through approved routes, this decision stands as a pivotal move,” he added.

According to him, the NCS has prioritised food security in response to a presidential directive. This initiative is evidenced by the distribution of food items to vulnerable members of society, commencing in Lagos, Kano and extending to other parts of the country to address urgent societal needs.

“We reassure the public that transparency and accountability will remain paramount under my leadership, fostering trust and confidence in the Service,” he said.

The CG however, condemned attacks on some of the officers, noting that Section 239 of the constitution imposes penalties for armed or bodily assault of an officer, including threats or any form of aggression.

“Conviction for this offence can result in imprisonment for up to 10 years. I urge members of the public to conduct their business with officers in a cordial and mutually respectful manner. Officers have also been cautioned to uphold professionalism and restraint in their interactions,” he said

Adeniyi also assured that the Service is actively implementing various measures to address some of its challenges one of these initiatives is the integration of geospatial technology alongside the utilization of satellite imagery and artificial intelligence tools and techniques.

These efforts were initiated upon assuming office to combat the longstanding issue of smuggling and enhance the NCS’s enforcement capabilities for effective monitoring of our extensive 4,000 km borders. Additionally, this initiative will establish a command and control center to monitor activities along our borders comprehensively.

Earlier this year, the NCS launched an extensive Time Release Study (TRS) with significant participation from the Federal Ministry of Finance and the Ministry of Marine and Blue Economy, further grace by the presence of the Minister of Industry Trade and Investment, Adeniyi said the TRS aims to identify bottlenecks in the clearance process, to enable the implementation of measures to promote transparency and commitment among key stakeholders and enhance trade facilitation.

Adeniyi therefore reaffirmed the NCS’s dedication to publishing the TRS report to foster transparency and address the current challenges hindering trade facilitation.

He said the NCS is currently finalising measures to implement Advanced Rulings, set to take effect in the coming months. This mechanism empowers traders to seek clarity and certainty regarding the classification, origin, and valuation of goods before importing them into the country.

“Essentially, an Advanced Ruling provides a binding decision from customs authorities on specific aspects of a proposed import transaction, offering traders predictability and consistency in customs procedures.

“Obtaining advanced clarity on customs matters enables businesses to plan their import activities more effectively, minimize the risk of non-compliance, and ensure smoother customs clearance processes,” he stated.

The service is also gearing up to launch the NCS Customs Analytical Laboratory, a critical measure set to take effect in Q2 and Q3.

The Customs Analytical Laboratory is a specialised facility equipped with advanced analytical instruments and techniques for the scientific analysis of goods and materials.