IPRA lauds customs revenue collection initiative

The International Public Relations Association (IPRA) has commended the Nigerian Customs Service (NCS) for its ongoing efforts to improve revenue collection through innovative measures. According to the association, the NCS’s focus on modernizing its operations and strengthening its revenue generation capacity is a key step toward enhancing the country’s economic growth and fiscal stability.

The commendation comes as the NCS continues to implement new policies aimed at increasing the efficiency of revenue collection from import duties, excise taxes, and other sources of income. These initiatives are seen as part of a broader strategy to reform the customs process, reduce smuggling, and curtail revenue leakage, all of which are crucial for bolstering Nigeria’s non-oil revenue streams.

Revenue Growth Through Reforms

The Nigerian Customs Service has been undergoing a series of reforms aimed at boosting its revenue generation capabilities. These efforts, which include the automation of customs processes, digitization of payment systems, and the introduction of stricter enforcement measures, have already begun yielding significant results.

In 2024, the NCS announced that it had surpassed its revenue collection target for the third consecutive quarter, raising hopes that these reforms could help Nigeria reduce its dependency on oil exports. The increased revenue from customs duties is seen as critical to the federal government’s efforts to diversify the economy and fund vital infrastructure projects.

IPRA, a global association that promotes ethical public relations practices and recognizes excellence in communications, praised the NCS for its forward-thinking approach. “The Nigerian Customs Service’s initiative to improve revenue collection is a commendable step in ensuring sustainable economic development. By embracing technology and modern customs management techniques, the NCS is setting a positive example for other government agencies,” said a statement from the IPRA.

### Automation and Technology as Game-Changers

One of the key drivers of the customs revenue collection initiative is the adoption of technology to streamline processes and reduce human interference. The NCS has introduced an e-customs system, which automates the submission and processing of import declarations. This system has made it easier for businesses to comply with customs regulations while reducing delays at ports of entry.

The e-customs system also integrates payment platforms, allowing importers and exporters to make payments electronically, thereby improving transparency and reducing the risk of corruption. By automating these processes, the NCS has significantly reduced the time needed to clear goods at Nigerian ports, which has also contributed to higher revenue collection as more goods are processed more efficiently.

According to the Comptroller-General of the NCS, the use of technology has been a game-changer. “The introduction of e-customs has revolutionized our operations. We are seeing faster clearance times, fewer errors in documentation, and a notable reduction in revenue leakage. This system has empowered us to meet and surpass our revenue targets, and we will continue to improve it to enhance service delivery.”

### Curbing Smuggling and Revenue Leakage

In addition to technological advancements, the NCS has also intensified its anti-smuggling operations, which are a significant aspect of its revenue collection strategy. Smuggling has long been a major challenge for Nigeria, with goods such as rice, textiles, and vehicles often entering the country illegally to evade taxes.

To combat this, the NCS has enhanced its border patrols, implemented the use of drones for surveillance, and established better collaboration with neighboring countries’ customs authorities. These measures have helped reduce the volume of smuggled goods and have led to an increase in legitimate imports, contributing to the overall growth in revenue.

IPRA acknowledged these efforts, noting that they are critical to ensuring the integrity of the country’s customs system. “The fight against smuggling is vital to protecting the country’s revenue base. The steps taken by the NCS to curb smuggling are commendable and demonstrate a commitment to safeguarding Nigeria’s economy,” the association said.

### Supporting Nigeria’s Economic Diversification

Nigeria has been making concerted efforts to diversify its economy away from oil, which has long been the primary source of government revenue. Customs revenue, as a key component of non-oil revenue, is increasingly becoming important in funding government programs and projects. With the fluctuating prices of oil and the global transition toward renewable energy, the Nigerian government is focused on strengthening other sectors, including agriculture, manufacturing, and trade.

The customs service’s reforms align with these diversification goals. By ensuring that customs revenue continues to grow, the NCS is helping to provide the government with the financial resources needed to support critical sectors of the economy.

IPRA emphasized the importance of these reforms in contributing to Nigeria’s long-term economic stability. “As Nigeria seeks to diversify its economy, customs revenue will play an increasingly important role. The NCS’s efforts to improve revenue collection will ensure that the country has the financial base to invest in key areas such as infrastructure, education, and healthcare.”

### Challenges and the Way Forward

Despite the progress made, there are still challenges that need to be addressed. The customs service continues to grapple with issues such as under-declaration of goods, misclassification of imports, and corrupt practices that undermine revenue collection. Additionally, there is a need for further capacity building within the NCS to ensure that officers are equipped with the skills needed to handle the evolving customs landscape.

To address these challenges, the NCS has been working on training programs for its officers and strengthening internal controls to prevent corruption. Moreover, the service has called for stronger partnerships with other government agencies, the private sector, and international organizations to tackle the issue of smuggling and ensure compliance with customs regulations.

The IPRA expressed confidence that with continued reform and support from stakeholders, the NCS will be able to overcome these challenges and further increase its revenue collection. “The road to reform is never easy, but the NCS has demonstrated that it is up to the task. We encourage the government, the private sector, and the public to continue supporting the NCS in its mission to improve customs revenue collection and contribute to Nigeria’s economic growth.”

Conclusion

The Nigerian Customs Service’s revenue collection initiative is a vital part of the country’s broader economic reform agenda. With the support of international bodies such as IPRA and a commitment to innovation and anti-smuggling measures, the NCS is well-positioned to continue its progress in increasing revenue and supporting Nigeria’s economic goals.

As Nigeria moves toward a more diversified economy, the role of customs revenue will only grow in importance. By embracing technology, tackling smuggling, and improving transparency, the NCS is laying the foundation for a more robust and sustainable revenue system, which will ultimately benefit all Nigerians.