Why Customs revenue target dropped by N478bn in 2023 – CG Adeniyi

Why Customs revenue target dropped by N478bn in 2023 – CG Adeniyi

 

The Nigeria Customs Service (NCS) earned N3.68 trillion as revenue in 2023, amounting to 87 per cent of its target.

Its Comptroller-General, Adewale Adeniyi, disclosed this and announced that the shortfall of N478 billion was due to a challenging operational environment.

He however said the agency recorded a total revenue collection of N3.21 trillion, marking a substantial 21.4 per cent increase from the previous year’s N2.64 trillion.

The shortfall

Adeniyi acknowledged that operational challenges played a pivotal role in the initial N532 billion revenue shortfalls recorded in the first half of 2023.

These challenges included lower transaction volumes, compliance issues, inadequate infrastructure, capacity gaps, delays in policy implementation, and socio-political factors.

He said operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delay in policy implementation and socio-political factors.

Adeniyi gave the factors as the anxiety associated with a major election year; the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills; and 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.

“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.”

Further, he noted that the latter part of 2023 witnessed a positive transformation following his appointment as comptroller-general in July.

Fight against smuggling, illicit trade

The NCS noted that its campaign against smuggling and illicit trade in 2023 resulted in 3,806 seizures with a Duty Paid value totalling N16.05 billion.

These confiscations included arms and ammunition, artifacts, illicit drugs, expired food produce, and endangered species of flora and fauna.

Also, the NCS achieved 52 convictions, with 11 specifically linked to illicit trade in animal/wildlife.

N5.08 trillion target for 2024

The NCS comptroller-general also said that the NCS is determined to meet the newly set revenue target of N5.08 trillion for the fiscal year 2024.

He outlined several strategic initiatives to boost the NCS’s performance positively, including the introduction of the advanced ruling system and aligning operations with global best practices.

He also said that the NCS was set to inaugurate an electronic auction (e-auction) platform, enhancing transparency in the auction process.

Adeniyi stressed that the government’s confidence in the NCS’s capabilities underscored its significant role in contributing to the nation’s fiscal well-being.