Customs post N4.2tn revenue in nine months

The Nigeria Customs Service has said it collected N4.28tn as revenue between January and September 2024.

The NCS, in a document obtained by The PUNCH on Sunday, said the N4.28tn represents a 33 per cent increase compared to the N3.21tn the service collected as revenue in the whole of 2023.

With the third quarter 2024 performance, the service now has an outstanding N981bn for the fourth quarter to meet its target of N5.1tn for the 2024 full year.

“The NCS has been able to generate revenue from January to September 2024 to the tune of N4.28tn while in the corresponding year, 2023, the service was able to generate a revenue sum of N3.21tn as also compared to the year, 2022 when the service was able to generate the sum of N2.60tn,” the document stated.

In the document, the service said that the year-on-year improvements in import duty collection show a marked improvement by measures put in place by the Central Bank of Nigeria and commercial banks in the adoption of digital infrastructure.

It said the measure has in turn assisted the service in improving transparency and accountability.

The service added that digital platforms such as the e-payment systems integrated into the NCS’s digital infrastructure allow for seamless import duty payment and reduced revenue leakages.

According to the service, by cutting down on bureaucratic delays and simplifying payment processes the NCS can ensure that more revenue is collected on time.

It added that systems like the Advance Ruling System helped mitigate instances of duty evasion and underreporting, which had been major issues in the past.

“The NCS Modernisation Project provides a transparent and traceable record of all transactions. This enhances accountability, such that once duty payments are logged, they cannot be altered or deleted. Combined with real-time audit capabilities, this makes it difficult to manipulate Import data, significantly enhancing transparency,” the service added.

Reacting to the surge in revenue, the Chairman of Ports & Terminal Multipurpose Limited of the National Council of Managing Directors of Licensed Customs Agents, Mr Abayomi Duyile, said the exchange rate fluctuations contributed to the increase in revenue.

“Exchange rate is the major cause. Look at the volume now, it is low compared to that of last year, you will find out that they are making more money. Because if the volume is low and they are making more money it is an exchange rate factor.

“As of last year, I think the exchange rate was less than N1,000/$. But as we speak today, it is over N1,600/$ and that is why they are making more money even though the volume of import has drastically reduced,” he said.

Also speaking, the Youth Leader of the Tincan Island Chapter of the Association of Nigerian Licensed Customs Agents, Sikiru Remilekun, attributed the increase to the introduction of Vehicles Identification Numbers for the valuation of imported vehicles, as well as the exchange rate.

“The maritime sector has experienced some significant growth in the past few years. The growth is a result of the introduction of the VIN which automatically scraps off the old ways of valuation. This method reduces human interference and most importantly, you automatically get your values systematically also the constant increases in exchange rate are another factor that led to the increase in revenue.

“Another reason is that the government is deliberately promoting and boosting exportation to balance the trade of the economy. So going forward, the customs revenue collector will surely experience growth every year,” he said.

In a similar development, the Nigeria Customs Service, Port Terminal Multiservices Limited Command announced on Sunday that it collected N239bn as revenue between January and September 2024.

In a statement, the command’s Public Relations Officer, Muhammad Yakubu, revealed that the revenue is N53bn higher when compared to the N185bn that the command collected at the same time in 2023, representing a 29 per cent increase.

The Customs Area Controller in charge of the command, Tenny Daniyan, said the command made seizures worth N28m within the period under review.