Customs set N5.079tr revenue target this year

The Nigeria Customs Service has set a revenue target of  N5.079 trillion this year.  Adewale Adeniyi, Comptroller-General of the Customs disclosed this today in a press conference in Abuja.

The service, he disclosed, generated a total of N3.206 trillion last year, a 21.4% increase from that of the preceding year’s total revenue of N2,641,616,673,501.83. The increase, he said,  aligns with the Nigeria Customs consistent upward growth in revenue, as evidenced by a 17.88% growth in 2022.

He noted that the steady expansion in revenue underscores the Service’s sustained efforts in optimizing
revenue collection for the government and exemplifies its ability to adapt to dynamic economic conditions.

This CGC said the achievement was particularly remarkable given the challenges within it’s operational environment.

Such operational challenges, he mentioned include  lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps. These challenges, he noted, were compounded by delays in policy implementation and socio-political factors.

Other headwinds in the economy the Customs CG lamented were, anxiety associated with a major election year, the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills which temporarily impacted purchasing power and overall economic activities.

He said the transition of power to the President Tinubu-led administration brought about new policy direction, including the removal of fuel subsidy, the floating of the exchange rate, and the closure of Nigeria’s Northern borders with Niger Republic, adding
another layer of complexity.

According to him, these challenges led to a revenue shortfall of N532 billion in the first half of the year, falling short of the projected revenue target of N1.84 trillion.

He, however, noted that some positive transformation occurred in the later part of the year, following his  appointment as the Comptroller-General in July.

This, he said, were accompanied by a merit-based reconstitution of the management team, resulting in a significant shift that enabled the Service to exceed monthly revenue targets by 6.71% for the first time in 2023.

He disclosed also that monthly revenue collection for the latter half of the year averaged N332.9 billion, a substantial increase from the initial N201.7 billion recorded in the first half of the year.

This positive trend, he said, could be attributed to strategic measures, including the immediate establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, streamlining enforcement under the Federal Operations Unit (FOU).

Additionally, strategic reassignments of Customs Area Controllers, the creation of an ideas bank, and extensive stakeholder engagements collectively contributed to this impressive resurgence, he noted.

The  CGS disclosed that the improved revenue collection in the latter half of 2023 played a crucial role in significantly reducing the revenue shortfall by 10%, decreasing from N532 billion to N478 billion by year-end.

This calculation was based on the government’s projected revenue collection by the Nigeria Customs Service (NCS)
of N3.684 trillion and the actual collection of N3.206 trillion.

Adeniyi noted that deficit in the Nigeria Customs revenue collection can be ascribed to deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy.

Specifically, he said the government approved a concession of N2 trillion, incorporating select dutiable items under the new Tariff heading Chapter 99.

The policy shift, he said, resulted in the exemption of duty payments on certain dutiable goods, previously falling within a duty range of 5% to 10%.

The overarching objective of the granted waivers and concessions, he disclosed were  twofold: to stimulate development across diverse economic sectors and to bolster the nation’s overall peace and security.

He said the Nigeria Customs  sustained its vigorous campaign against smuggling and illicit trade, culminating in 3,806 seizures with a Duty Paid Value totalling  N16,049,023,262.

The CG noted that the confiscations encompassed a diverse array of contraband, including arms and ammunition, artifacts and antiquities, illicit drugs, expired food produce, and endangered species of flora and fauna. Remarkably, the NCS, he said, achieved 52 convictions, with 11 specifically linked to the illicit trade in animal/wildlife.

Noteworthy, he mentioned, was the international acknowledgment garnered for the Service’s efforts in combating the illicit trade in animal/wildlife, commenting that the steadfast commitment underscores the NCS’s dedication to protecting Nigerian society, maintaining a resolute stance against smugglers, and diligently dismantling their operations.

Going forward, the CG said numerous strategic initiatives are poised to positively impact the Service’s performance in the coming months.

 The initiatives include the introduction of the Advanced Ruling system, aligning NCS operations with global best practices and meeting the recommendations of the World Trade Organization Trade Facilitation Agreement (WTO TFA).

Additionally, the inauguration of a Steering Committee on the Implementation of Authorized
Economic Operators (AEO) for Compliant Traders underscores our readiness to transition from Fastrack 2.0 to the AEO concept. Engagements with the
international community, such as those with the World Customs Organization (WCO), JICA, and Japan Customs, focused on key areas is expected to lead to
the implementation of the Customs Laboratory, adoption of geospatial technology, and the conduct of a Time Release Study. Collaborative efforts with the Customs Administration of the Republic of Benin.

Others are the the revitalization of zonal structures, and integration of Customs institutions into the administrative framework all contribute to NCS’s commitment to efficient service delivery and positive stakeholder relationships.

He said the NCS also responded to changes in legislation, engagement with the National Trade Facilitation Committee (NTFC), initiated Corporate Social Responsibility projects, integrated efforts with the Federal Road Safety Corps (FRSC), enhanced personnel welfare programs, and introduced the Work-Life Balance (WLB) initiative.

In the upcoming week, the NCS is set to inaugurate an electronic auction (e-auction) platform, strategically designed to enhance transparency in the auction process.

These collective actions, the CGS noted, signify Customs dedication to enhancing staff welfare and sustaining optimal performance.

For the fiscal year 2024, the NCS, he disclosed,  has been allocated a new revenue target of NGN 5.079 trillion, aligning with the government’s economic objectives. This
target signifies the government’s confidence in the NCS’s capabilities and underscores the Service’s important role in contributing to the nation’s fiscal
wellbeing.

The strategic initiatives detailed above, alongside other operational reforms, he said, are anticipated to play a crucial role in achieving the revenue goal.

 As the NCS addresses the challenges and opportunities in 2024, the CG said the Service is steadfast in its commitment to implementing these strategies and exploring practical approaches to meet the heightened revenue target. This commitment aligns with the NCS’s ongoing dedication to efficiency, excellence, and positive contributions to Nigeria’s economic landscape.

Notwithstanding these concerted efforts, NCS, he said was  also conscious of the topical trends and issues that will impact the Service operations in 2024.

They include, alignment with Government Policy Direction, adding that the President Bola Ahmed Tinubu Led administration has identified eight priority areas, including food security, poverty eradication, growth, job creation, access to capital, inclusion, rule of law, and fighting corruption.

 In addition to these priority areas, NCS, he said has identified 21 relevant areas outlined in the Policy Advisory document. These areas, he noted would continue to shape NCS’s operations throughout 2024, aligning with the broader policy goals of the government.

 On the African Continental Free Trade Area (AfCFTA), the Customs CG said Nigeria’s pivotal leadership role is underscored by its distinction as the largest and most populous country in Africa, boasting a significant industrial presence. Notably, Lagos alone contributes substantially, accounting for 80% of Africa’s Cultural Services export.

 The inception of the Guided Trade Initiative (GTI) on October 7, 2022, he said,  saw over 30 countries participating, with Customs assuming a leading role in the implementation of the AfCFTA.

As the driving force behind AfCFTA execution, he said  Customs holds a central position in shaping government trade policy, adding that it is resolutely committed to actively contributing and playing a pivotal role in aligning its operations with the dynamic facets of AfCFTA.

On Customs modernisation, the CGC said the NCS recognizes the constant evolution of its operating environment, influenced by technological advancements shaping customs operations. These trends, he said would  be integral to NCS activities, and the service is committed to staying abreast of technological changes, ensuring continuous modernization to enhance efficiency and effectiveness.

 Speaking on border management, he said the  zero-tolerance approach towards smuggling, especially of petroleum products out of the country, will be rigorously enforced, noting that the NCS remains resolute in addressing border management challenges, balancing security concerns with trade facilitation.

On leveraging on NCS Act to Implement Modern Procedures, Adeniyi said the NCS Act, signed in May 2023, provides a platform for modernizing operations, enabling initiatives such as the AEO program and the Advanced Ruling System.

He noted that the NCS is committed to leveraging the act to explore further areas for enhancing the trade experience in Nigeria, ensuring efficiency and effectiveness.

On  stakeholder engagement, the CGC said the  year 2024, dedicated by the WCO to Engaging Traditional and New Partners with Purpose, underscores the importance of collaboration.

Building on the foundations laid during the just concluded Comptroller-General of Customs Conference in December 2023, a joint declaration by NCS and stakeholders commits to working more effectively. NCS, he said would rigorously pursue the engagements based on timelines and deliverables.

On the imminent departure of over 50% of Customs management staff, who have rendered meritorious service for up to 35 years, he said the NCS foresees a substantial turnover as the impending change, combined with the dynamic global trade environment influenced by advancements in Artificial Intelligence and Data Analytics, underscores the necessity for an ongoing enhancement of the workforce’s skill set.

Recognising these imperatives, the NCS, he said  is resolutely dedicated to executing intensive capacity-building initiatives.

These endeavours, he said, are designed to uplift the capabilities of younger officers, ensuring a seamless transition without disruptions to activities and
operations, noting that the Service remains committed to effectively managing of the transitional phase, complemented by the ongoing training of officers in data analytics and other Customs operations as part of the continuous skill upgrade process.

 A notable factor influencing NCS operations, he lamented, was the fluctuation in exchange rate, saying the  Service acknowledges the impact of currency exchange variations on trade dynamics and revenue collection.

The NCS, he said, aims to address this challenge proactively by considering strategies to mitigate potential adverse effects.

One of the key strategies, he pointed out, is to regularly update the exchange rate in line with the going market conditions. This approach is geared towards ensuring optimal revenue performance in the face of currency fluctuations and maintaining adaptability to changes in our operational environment.

As the country advances in 2024, the CGC said the Customs is committed to strategically charting its
course for the future, saying that global and national trends, including the AfCFTA and WCO theme, woul shape Customs operations.

 The focus, he said,  remains on aligning NCS activities with government policy, enhancing stakeholder engagements, and fortifying operational preparedness through technological advancements and capacity building.

The NCS, the Customs helmsman pointed out, would continue to adapt to emerging challenges, foster collaborations, and uphold its commitment to integrity and administrative procedures.

He said the outlined strategies, coupled with ongoing initiatives, are poised to facilitate the achievement of the newly set revenue target of N5.079 trillion for the fiscal year 2024, inviting all stakeholders to actively participate in the collective journey towards a more efficient, transparent, and revenue-optimized Customs operation for the benefit of the nation, emphasising a zero-tolerance stance towards indiscipline and non-compliance in the year 2024.