2024 Q1: Customs Generates N1.3trn, Exceeds 20% Annual Revenue Target
By Aluta News
March 04, 2024
Despite declining Nigerian cargo throughput estimated to have dwindled by 4.89 percent in the first quarter of 2024, the Nigeria Customs Service (NCS) has generated N1.34trillion between January and March, exceeding 20 percent of the 2024 revenue target of N5.07trillion.
The Comptroller-General of NCS, Bashir Adewale Adeniyi MFR, revealed this during a press briefing on Wednesday organized to acquaint the Nigerian citizens about Customs activities in the first quarter.
His words: “Total revenue collected during this period amounted to N1,347,675,608,972.75. The collection for the first quarter represents a substantial increase of 122.35% compared to the same period last year, where N606,119,935,146.67. Month-by-month analysis further illustrates the Service’s impressive growth trajectory.”
“In January 2024, revenue collection surged by 95.60%, reaching N390,824,148,326.55 from N199,809,974,327.52 recorded in January 2023. This upward trend continued in February 2024, with a staggering 138.68% growth, elevating revenue collection to N450,209,267,557.15 from N188,625,011,386.87 in February 2023. By March 2024, the revenue collected by NCS revenue grew by 132.76% from N217,669,949,432.28 to N506,642,193,019.05.”
When compared to the Federal Government’s annual revenue target of N5.07 trillion for the NCS to collect in 2024, which translates to N423 billion monthly; the Service is recording an average monthly revenue growth of 6.2% over the set monthly target and a cumulative revenue collection of 18.6%, equivalent to N78,675,608,972.75 over the set quarterly target of N1.269 trillion.
The Customs boss, however, observed that there have been challenges related to non-compliance with regulations, infrastructure limitations, and a notable decline in cargo throughput, evidenced by a 4.89% decrease in the volume of transactions handled.
Adeniyi equally posited that significant fluctuations in exchange rates applied in the customs clearance of consignments posed considerable difficulties.
“As per protocol, the exchange rate utilized by Customs in the clearance of goods via the Nigeria Integrated Customs Information System (NICIS) is based on the rate determined by the Central Bank of Nigeria (CBN). In the last quarter, a total of 28 rates were directed by the CBN, ranging from N951.94 per USD 1 in January 2024 to a peak of N1,662.35 per USD 1 in February 2024.”
“While a singular exchange rate of N951.94 per USD 1 was maintained in January, February witnessed 15 different spot rates ranging from N951.94 per USD 1 to N1,662.35 per USD 1. March saw a total of 13 different spot rates applied, ranging from N1,303.84 to N1,630.16. These fluctuations resulted in an average applied exchange rate of N1,314.03 per USD 1 in the clearance of Customs goods during the quarter,” he remarked.
On anti-smuggling activities in the first quarter of 2024, NCS recorded a total of 572 seizures, encompassing various items valued at N10,593,099,654.50 in Duty Paid Value (DPV).
“Notably, January saw 111 seizures amounting to N842,992,751.50 in DPV, while February marked the highest seizure numbers of 432, totalling N3,704,703,350.34. Rice constituted 39% of the seizures, followed by petroleum products at 26%, with motor vehicles and textiles accounting for 9% and 6% of the seizures, respectively. During this period, the NCS detained 22 suspects, and appropriate legal measures will be taken in accordance with the Nigeria Customs Service Act 2023,” he said.
Meanwhile, he maintained that trade facilitation remains a central focus of the NCS operations, stating that the Service diligently worked towards streamlining processes, minimizing bottlenecks, and optimizing efficiency across our ports to ensure seamless trade transactions. In First Quarter 2024, the
“NCS processed a total of 311,492 Single Goods Declarations (SGDs) for imports, reflecting the volume of import transactions handled. This figure indicates a decrease compared to the total volume of 327,491 processed in 2023 and 403,233 SGDs in 2022.”
“Regarding export transactions, a total of 10,786 SGDs were processed in 2024 compared to 9,752 transactions in 2023, representing a 10.60% growth in export activities. Notably, a significant portion of this growth occurred in January, with 4,067 transactions processed in 2024 compared to 3,352 SGDs in 2023, marking a 29.69% increase,” the NCS boss remarked.
He further stressed that the Service remains particularly interested in the growth of the non-oil export sector, aligning with the priorities of the President Bola Ahmed Tinubu led administration and the initiatives pursued by NCS in recent times.