Between January and September 2024, the Nigeria Customs Service (NCS) reported a remarkable revenue collection of N4.28 trillion, reflecting a 33% increase from the N3.21 trillion collected throughout 2023. This growth is particularly noteworthy, as it underscores the NCS’s improved operational efficiency and strategic initiatives aimed at enhancing revenue collection. The service’s performance thus far indicates a strong trajectory toward achieving a full-year revenue target of N5.1 trillion, with a remaining N981 billion to go in the last quarter. A detailed report from the NCS attributes this upward trend to various enhancements in the customs’ processes and systems.
A significant driver of the improved revenue collection is identified as the modernization of operations, particularly the integration of digital infrastructures adopted by the Central Bank of Nigeria and commercial banks. These digital platforms facilitate efficient and transparent payment processes, reducing bureaucratic delays, and minimizing revenue leakages. This modernization also includes the implementation of an Advance Ruling System, which helps combat duty evasion and underreporting—issues that have historically plagued customs revenue collection. By ensuring that once duty payments are logged, they cannot be altered or deleted, the NCS enhances accountability and transparency within its operations.
Industry experts have weighed in on the revenue growth, with factors such as fluctuating exchange rates playing a crucial role. Mr. Abayomi Duyile, chairman of Ports & Terminal Multipurpose Limited, stated that although import volumes have decreased compared to previous years, the value of revenue collected has increased due to the depreciation of the Naira against the dollar, which rose from under N1,000 to over N1,600 for a dollar. This disparity highlights how the exchange rate heavily influences revenue generation in customs operations, suggesting that even with lower import volumes, fiscal returns can still rise significantly.
The introduction of Vehicle Identification Numbers (VIN) for vehicle valuation has also been credited with aiding revenue collection. According to Sikiru Remilekun, the Youth Leader of the Tincan Island Chapter of the Association of Nigerian Licensed Customs Agents, the VIN system has transformed how vehicles are valued, reducing human error and interference in the assessment process. This systematic approach not only streamlines valuations but also minimizes discrepancies that could lead to revenue losses, thus contributing further to increased customs revenues overall.
In addition to these transformative practices, the NCS’s Port Terminal Multiservices Limited Command separately reported that it collected N239 billion in revenue during the same period, marking a 29% increase over the N185 billion collected in the comparable timeframe in 2023. The Command has also made noteworthy seizures valued at N28 million, including arms and ammunition concealed within imported vehicles, highlighting the NCS’s commitment to safeguarding the nation against illicit imports and bolstering its enforcement capabilities.
Overall, the Nigeria Customs Service’s ability to navigate challenges and leverage technological advancements has played a pivotal role in its current revenue success. As the service focuses on maintaining momentum in revenue collections while simultaneously enhancing security measures against illegal imports, the future looks promising for the NCS. Analysts predict continued growth in customs revenue, driven by ongoing government policies aimed at balancing trade and fostering a more robust economic environment, indicating that future revenue enhancement will likely sustain this positive trend.
