Customs Surges Ahead: Achieves 87% of 2023 Revenue Target

In a recent revelation by the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, it was disclosed that the NCS encountered challenges in meeting its revenue target for 2023, closing the fiscal year with a total revenue collection of N3.21 trillion. Despite a commendable 21.4% increase from the previous year’s revenue of N2.64 trillion, the NCS faced a significant shortfall of N478 billion, amounting to 87% of its targeted N3.68 trillion.

Operational challenges played a pivotal role in the initial revenue shortfalls, with Adeniyi citing lower transaction volumes, compliance issues, inadequate infrastructure, capacity gaps, delays in policy implementation, and socio-political factors as contributing factors. The first half of 2023 witnessed a revenue deficit of N532 billion, attributed to various hurdles such as the anxiety surrounding a major election year, cash crunch linked to the introduction of higher denominations of the new Naira bills, and policy shifts following the transition to the President Tinubu-led Administration.

However, a positive transformation unfolded in the latter part of the year, marked by Adeniyi’s appointment as Comptroller-General in July. A merit-based reconstitution of the management team, streamlined enforcement under the Federal Operations Unit (FOU), and strategic measures like stakeholder engagements and an ideas bank contributed to a remarkable resurgence. Monthly revenue collection for the latter half of the year averaged N332.9 billion, significantly surpassing the initial N201.7 billion recorded in the first half, resulting in a 10% reduction in the revenue shortfall to N478 billion by year-end.

Adeniyi explained that the deficit in NCS revenue collection was partly due to deliberate government initiatives and incentives aimed at fostering growth across various economic sectors. The approval of a N2 trillion concession for select dutiable items under the new Tariff heading Chapter 99 played a crucial role in this, exempting duty payments on certain goods and contributing to economic development and national peace and security.

The NCS, in its fight against smuggling and illicit trade in 2023, reported 3,806 seizures with a Duty Paid value of N16.05 billion. These seizures encompassed arms and ammunition, artifacts, illicit drugs, expired food produce, and endangered species of flora and fauna. The NCS achieved 52 convictions, with 11 specifically related to illicit trade in animal/wildlife.

Looking ahead, Adeniyi expressed the NCS’s determination to meet the newly set revenue target of N5.08 trillion for the fiscal year 2024. Several strategic initiatives were outlined to positively impact performance, including the introduction of the Advanced Ruling system, alignment of operations with global best practices, and the inauguration of an electronic auction (e-auction) platform to enhance transparency.

Adeniyi emphasized the government’s confidence in the NCS’s capabilities, underscoring its significant role in contributing to the nation’s fiscal well-being. The strategic initiatives and operational reforms put in place are expected to play a crucial role in achieving the ambitious N5.08 trillion revenue goal for 2024, as the NCS continues its commitment to effective revenue collection and combating illicit trade. Infostride News brings you an exclusive insight into the challenges and aspirations of the Nigeria Customs Service in its fiscal endeavors.