Paragraph 1: Record-Breaking Revenue Collection
The Nigeria Customs Service (NCS) achieved a historic milestone in 2024, collecting a staggering N6.105 trillion in revenue. This figure represents a remarkable 90.4% increase compared to the N3.206 trillion collected in 2023, marking the highest year-on-year growth in recent times. The NCS not only surpassed its 2024 revenue target of N5.079 trillion by N1.026 trillion (20.2%) but also achieved its highest-ever monthly revenue collection in October, reaching N603.17 billion. This outstanding performance underscores the NCS’s enhanced revenue generation efforts and its alignment with the economic policy objectives of the federal government. The substantial increase contrasts sharply with the revenue shortfalls experienced in 2022 and 2023, where the service fell short of its targets by 14% and 13%, respectively. This turnaround signifies a significant improvement in the NCS’s operational efficiency and revenue mobilization strategies.
Paragraph 2: Breakdown of Revenue Sources
The N6.105 trillion revenue collected in 2024 comprises three main components: collections for the Federation Account, Non-Federation Account levies, and Value Added Tax (VAT) on imports. The Federation Account received N3.657 trillion, which includes import duty, excise duty, fees, proceeds from e-auctions, and the Common External Tariff (CET) levy. Non-Federation Account levies contributed N816.9 billion, while VAT on imports amounted to N1.63 trillion. This diversified revenue stream highlights the NCS’s comprehensive approach to revenue generation, leveraging various sources to maximize collections for the benefit of the nation. The substantial contribution from VAT on imports reflects the significant volume of import activities within the country and the effectiveness of the NCS in collecting this tax.
Paragraph 3: Trade Surplus and Economic Impact
Beyond revenue collection, the NCS played a crucial role in facilitating trade and contributing to the nation’s economic growth. In 2024, Nigeria recorded a substantial trade surplus of N66.34 trillion, with exports totalling N136.65 trillion and imports at N60.29 trillion. The overall trade volume for the year reached N196.94 trillion, demonstrating robust economic activity. This positive trade balance underscores the country’s increasing export capacity and the effectiveness of government policies aimed at promoting international trade. The NCS’s role in processing and facilitating these trade flows is critical to maintaining this positive momentum.
Paragraph 4: Strategic Concessions and Economic Stimulus
To further bolster economic activity and support key sectors, the NCS granted concessions worth N1.68 trillion in 2024. This amount includes N723 billion in import duty waivers, N372.65 billion in concessions on other levies, and N586.65 billion in relief on import VAT. These strategic concessions were targeted at stimulating economic growth, fostering industrial development, and improving the overall business environment, aligning with the government’s broader economic policy objectives. The focus on targeted concessions underscores a shift towards a more strategic and impactful approach to stimulating specific sectors identified as crucial for economic growth.
Paragraph 5: Enhanced Monitoring and Concession Reforms
The N1.68 trillion in concessions granted in 2024 represents a significant decrease compared to the N3.959 trillion granted in 2023. This reduction is attributed to the NCS’s implementation of enhanced monitoring mechanisms and strategic reforms aimed at minimizing loopholes and preventing abuses in the concession-granting process. These measures ensure that concessions are awarded only to genuinely qualified enterprises, maximizing the impact of these incentives while minimizing potential revenue leakage. The tightened controls demonstrate the NCS’s commitment to fiscal responsibility and ensuring the integrity of the concession system.
Paragraph 6: Leadership and Attribution of Success
The Comptroller-General of Customs, Adewale Adeniyi, attributed the NCS’s remarkable achievements to the continuous alignment with the policy objectives of President Bola Tinubu, the guidance of the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, and the dedication and hard work of the entire NCS staff. The collaborative efforts and strategic direction provided by the leadership were instrumental in achieving these unprecedented results. The emphasis on policy alignment and inter-agency cooperation underlines the importance of a coordinated approach to achieving national economic goals. The recognition of the NCS staff’s contribution emphasizes the role of individual commitment and teamwork in driving institutional success.
