As the Nigeria Customs Service (NCS) swims in the euphoria of having met and exceeded its 2024 revenue target of N5.079 trillion with over 20.2 per cent increase to N6.105 trillion, the National Assembly foists what can best be described as a humongous revenue target of N12 trillion on the service for 2025
By Udoka Ekeleme, Abuja
The Nigeria Customs Service (NCS) said it generated N6.105 trillion in 2024, surpassing its revenue collection target for the year by 20.2 percent largely driven by a 179.3 per cent rise in total value of trade processed to N196.94 billion in 2024 from N70.5 trillion in 2023.
Presenting its scorecard for 2024, It also disclosed that in 2024, it made 3,555 seizures with Duty Paid Value (DPV) of N35.29 billion.
The Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, disclosed this at a media briefing on the 2024 achievements of the organisation in Abuja.
He said: “The NCS has again recorded another unprecedented performance in revenue collection for the year 2024. The Service collected N 6.105 trillion, surpassing our target of N 5.079 trillion by N1.026 trillion, representing a 20.2 percent increase over and above the target.
“This remarkable achievement represents a significant 90.4 percent increase from our 2023 collection of N3.206 trillion. The growth is historic as it marks the highest Year-on-Year increase recorded by the Service in recent times, surpassing the 52.24 percent growth recorded in 2022 by 38.18 percent.
“Additionally, the Service achieved another milestone in October 2024 by recording the highest monthly collection ever of N603.171 billion.”
Details of the other components of the revenue indicated that Federation Account Collections stood at N3.675 trillion; Non-Federation Account Levies amounted to N816.902 billion, while Value Added Tax (VAT) proceeds hit N1.631 trillion.
Adeniyi said that the revenue performance of the Customs last year was achieved despite significant concessions granted to support various sectors of the economy, amounting to N1.682 trillion.
According to him, these achievements were made possible through Customs continuous alignment with the policy objectives of President Bola Tinubu, under the guidance of the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, as well as support of Management and the entire staff of Nigeria Customs Service.
On trade facilitation, the NCS boss revealed that the organisation processed imports with a Cost, Insurance and Freight (CIF) value of N60.29 trillion in 2024, representing a remarkable 117.4% increase from N27.74 trillion in 2023.
“This was achieved through 1,262,988 import transactions, handling a total mass of 15.35 billion kilograms. Our export trade performance was equally impressive, with the total CIF value rising significantly to N136.65 trillion in 2024 from N42.77 trillion in 2023, marking a 219.5 percent increase.
“While the number of export transactions remained relatively stable at 38,199 compared to 38,294 in 2023, we witnessed a substantial increase in export volume, processing 12.35 billion kilograms in 2024 compared to 3.70 billion kilograms in 2023.
“This 234 percent increase in export mass, coupled with the higher value, indicates a robust growth in our export trade and suggests increasing competitiveness of Nigerian products in the international market.
“The total trade value handled by the Service in 2024 amounted to N196.94 trillion, compared to N70.50 trillion in 2023, representing a 179.3 percent increase. This substantial growth in trade value, achieved with fewer but more valuable transactions, is evident of the increasing sophistication of Nigeria’s international trade and the effectiveness of our trade facilitation measures.”
Going forward, the CGC said that his team would pay greater attention to the development and deployment of technology infrastructure, especially home-grown solutions to achieve greater efficiency.
The Service, he said, commenced pilot testing of its indigenously developed customs clearance platform with the support of our concessionaires under the Trade Modernisation Project, named ‘B’Odogwu’, in the fourth quarter of 2024, adding: “It is indeed gratifying to see how home-grown solutions are gradually enhancing our operational efficiency and ensuring seamless trade facilitation.”
Adeniyi said the truth is that trade has blossomed under President Tinubu and that his team was determined to make more gains on the past successes.
On its anti-smuggling and enforcement efforts, Adeniyi said that the NCS made 3,555 seizures, including 900 arms and 113,472 rounds of ammunition in 2014, with Duty Paid Value (DPV) of seizures estimated at N35.29 billion.
“These seizures with the Cost, Insurance and Freight (CIF) value of N28.46 billion and total duty of N6.83 billion, highlights the scale of attempted economic sabotage prevented by the Service.”
Following the unprecedented revenue collection feat of 2024, some economists, shippers and importers have criticized the National Assembly for proposing a N12 trillion revenue target for the NCS in 2025, warning of devastating consequences on international trade, local industries and consumers, comprising ordinary Nigerians.
The stakeholders, who argued that the target, which is double the initial N6.5 trillion proposal, could stifle economic activities across the country, drive importers out of business and exacerbate hyperinflation, cautioned that the ambitious goal would raise import costs, compound the struggles of businesses already overwhelmed by high operational expenses and an unstable economy.
The National Assembly Joint Committee on Finance announced the new revenue target on Tuesday, January 14, 2025 with Chairmen Senators Sani Musa and James Faleke asking the CGC Adeniyi to achieve the N12 trillion projection in the 2025 Appropriation Bill.
Head of the Customs and Trade Facilitation Committee at the Importers Association of Nigeria (IMAN), Ajanonwu Vincent, who expressed disappointment over the lack of attention to Nigeria’s declining international trade, criticised the National Assembly for prioritising revenue generation over economic realities.
“Members of the National Assembly are not importers, who feel the blunt effects of government policies. They are not part of the masses, who bear the pains of high tariffs and over-taxation. Their focus seems to be on perpetuating squandermania,” Vincent stated.
He highlighted the cascading effects of high tariffs, which discourage trade, stifle local industries and push importers out of business, lamenting that shipping companies were downsizing, agents are becoming jobless, and many importers have shut down, while the masses are starving to death.
Also reacting to the development, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that the higher revenue target would worsen the financial strain on businesses.
He said clearing costs are already high due to the exchange rate used to calculate import duties, noting that increasing the revenue target now would be unfair to the business community.
Yusuf emphasised the inflationary impact of the policy, as businesses would pass on the additional costs to consumers, who are already grappling with economic hardships across the country.
He also noted that most importers are diverting goods to neighbouring countries with lower import costs, a situation that poses risks to Nigeria’s maritime sector.
He cautioned that declining cargo volumes would significantly impact terminal operators, bonded terminal operators, clearing agents and the Nigerian Ports Authority (NPA), which will result in financial losses for investors.
On his part, a former President of the Shippers Association of Lagos (SAL), Jonathan Nicol, explained that customs revenue depends on cargo availability, which has been declining due to rising costs and unfavourable business conditions.
“If the cargo is there, shippers will gladly pay duties. Without cargo, how can N12 trillion be achieved?” Nicol queried just as he outlined the cumulative costs faced by shippers, warning that additional levies would drive businesses to more competitive ports in neighbouring countries.
He also faulted the government’s lack of collaboration with shippers and demanded their inclusion in the country’s policy-making processes.
