Nigeria Customs Service Records Strong Q1 2025 Performance Amidst Economic Challenges
The Nigeria Customs Service (NCS) announced robust performance figures for the first quarter of 2025, showcasing significant growth in trade value, revenue collection, and anti-smuggling activities. Comptroller-General Adewale Adeniyi reported a total trade value of N36.3 trillion, highlighting Nigeria’s active participation in international trade despite prevailing global economic headwinds. This impressive figure underscores the NCS’s dedication to implementing trade facilitation strategies that bolster Nigeria’s competitiveness in the global marketplace. Furthermore, the NCS surpassed its revenue target for Q1 2025, collecting N1.75 trillion against a benchmark of N1.6 trillion, exceeding projections by N106.5 billion and representing a substantial 29% increase compared to the N1.3 trillion collected in the same period of 2024. This robust revenue performance demonstrates the efficacy of the NCS’s measures to curb revenue leakage while simultaneously streamlining compliant trade practices.
A detailed monthly breakdown of revenue collection reveals consistent growth throughout the quarter. January’s collection of N647 billion not only surpassed its monthly target of N548 billion by 18% but also exhibited a remarkable 65% year-on-year growth. February’s collection reached N540 billion, exceeding the target by 1.3% and demonstrating a 19.97% increase over 2024 figures. March sustained this positive momentum, with N563 billion collected, surpassing the target by 2.7% and achieving an 11.22% improvement compared to March 2024. These consistent monthly gains solidify the effectiveness of the NCS’s strategic approach, which combines rigorous enforcement with strengthened partnerships to maintain revenue growth.
In its anti-smuggling operations, the NCS recorded significant success during the first quarter of 2025, conducting 298 seizures with a total duty paid value of N7.6 billion. This represents a substantial 78.41% increase compared to the N4.3 billion recorded in the fourth quarter of 2024, highlighting the enhanced effectiveness of the NCS’s enforcement activities. While the Q1 2025 figure reflects a 19.70% decrease compared to the N9.5 billion recorded in Q1 2024, this reduction is attributed to improved compliance among stakeholders, fostered through sustained engagement and the deterrent effect of the NCS’s enforcement operations.
The NCS also processed a significant volume of exports during Q1 2025, handling 8,153 export shipments. While this represents a 6.4% decrease compared to Q4 2024 and a 24.4% decline compared to Q1 2024, the total export mass reached 5.03 billion kilograms, a remarkable 348% increase from the 1.12 billion kg recorded in Q1 2024. This suggests a shift towards bulk commodity exports, indicated by fewer transactions processing significantly larger shipments. The Cost, Insurance, and Freight (CIF) value remained stable at N21.51 trillion, compared to N21.58 trillion in Q1 2024, further supporting the observation of changing trade patterns and improved processing efficiency in the NCS’s export systems.
On the import front, the NCS processed 327,928 Single Goods Declarations (SGDs) during Q1 2025, representing a 5.28% increase compared to the 311,492 SGDs processed in Q1 2024. This increase signifies growing confidence in the NCS’s trade facilitation measures. The total mass of imported goods reached 4.9 billion kg, a 40.14% increase from Q1 2024, indicating robust growth in import volumes. The CIF value of imports also increased by 26.72% to N14.8 trillion, suggesting a shift towards higher-value goods being imported into Nigeria. These figures collectively demonstrate the positive impact of the NCS’s initiatives on facilitating trade and boosting economic activity.
Despite the positive performance, the NCS faced several challenges during the first quarter of 2025. Exchange rate volatility remained a significant concern, impacting trade patterns and customs valuation. The NCS recorded 62 exchange rate fluctuations during Q1 2025, ranging from N1,477.72/$ to N1,569.53/$, with an average rate of N1,521.59/$. While this volatility was slightly less pronounced compared to the same period in 2024, it continues to pose challenges for traders and affects the predictability of import costs. The NCS is actively collaborating with the Central Bank of Nigeria and the Federal Ministry of Finance to implement measures aimed at stabilizing the exchange rate for import declarations.
Other challenges include the implementation and subsequent suspension of the Financial Customs Service Operation (also known as the 4% FOB), requiring operational adjustments for both the NCS and stakeholders. Furthermore, the 14% reciprocal tariff imposed on Nigerian exports by the United States of America in March 2025 presents potential implications for Nigerian export trade and necessitates strategic diplomatic and policy responses. Lastly, despite enhanced enforcement efforts, non-compliance, particularly in the form of smuggling, persists as a challenge. The NCS is continuously adapting its strategies to combat increasingly sophisticated smuggling networks, leveraging technology and intelligence-led operations to address this threat to the Nigerian economy and security.
