April 19, 2024

Customs Record N1.34trn Revenue Collection In 3 Months

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Customs Record N1.34trn Revenue Collection In 3 Months

By Ebenezer William

The Nigeria Customs Service commenced the journey to the realisation of its 2024 revenue target of N5.7 trillion Naira, with an impressive N1.34trn revenue collection for the first quarter of 2024.

Comptroller General of the NCS, Bashir Adewale Adeniyi, gave this indication on Wednesday,3 April, when he briefed the press on the activities of the Service in the first quarter of 2024, at the NCS Headquarters in Abuja

The Customs boss noted that In the first quarter of 2024, the NCS demonstrated remarkable performance in revenue collection. Total revenue collected during this period amounted to NGN 1,347,675,608,972.75.

The collection for the first quarter represents a substantial increase of 122.35% compared to the same period last year, where NGN 606,119,935,146.67. A Month-by-month analysis of the period illustrates the Service’s impressive growth trajectory.

” In January 2024, revenue collection surged by 95.60%, reaching NGN 390,824,148,326.55 from NGN 199,809,974,327.52 recorded in January 2023.

This upward trend continued in February 2024, with a staggering 138.68% growth, elevating revenue collection to NGN 450,209,267,557.15 from NGN 188,625,011,386.87 in February 2023. By March 2024, the revenue collected by NCS revenue grew by 132.76% from NGN 217,669,949,432.28 to NGN 506,642,193,019.05.

” When compared to the Federal government’s annual revenue target of NGN 5.07 trillion for the NCS to collect in 2024, the target translates to a monthly revenue target of NGN 423 billion.” Adeniyi stated.

Going further he said,” We are pleased to report an average monthly revenue growth of 6.2% over the set monthly target and a cumulative revenue collection of 18.6%, equivalent to NGN 78,675,608,972.75 over the set quarterly target of NGN 1.269 trillion”.

On the suppression of Smuggling, Comptroller Adeniyi said in the first quarter of 2024, the NCS recorded a total of 572 seizures, encompassing various items valued at NGN 10,593,099,654.50 in Duty Paid Value (DPV).

” Notably, January saw 111 seizures amounting to NGN 842,992,751.50 in DPV, while February marked the highest seizure numbers of 432, totalling NGN 3,704,703,350.34. 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 by the Nigeria Customs Service Act 2023″ he informed.

While the Customs boss has an uncompromising attitude to revenue generation, he equally demonstrates that trade facilitation remains one of the kernel objectives of his administration.

His words,” Trade facilitation remains a central focus of the NCS operations. Despite inherent challenges, we have diligently worked towards streamlining processes, minimizing bottlenecks, and optimizing efficiency across our ports to ensure seamless trade transactions.

To further demonstrate his unyielding stance on trade facilitation, Comptroller Adeniyi noted that,” 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, he said, indicates a decrease compared to the total volume of 327,491 processed in 2023 and 403,233 SGDs in 2022.

While the Comptroller Adeniyi’s Customs has done well in the area of revenue generation and facilitation of trade, it has also extended the same momentum to export.
He said,” 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 Service is 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

The huge success recorded by the NCS under the watch of Comptroller Adeniyi, is made possible by a combination of various factors.
Some of these key performance indicators include the dedication and effort of NCS who have worked tirelessly and around the clock to ensure consistent and upward momentum.
” NCS officers have played a key role in driving the implementation of initiatives, as evidenced by our performance across the three core statutory responsibilities set by the government. Among these initiatives is the introduction of the E-auction generating a total revenue of NGN 1.6 billion in February and March” the Customs boss noted.

He praised the support of the Federal Government to the Service for It to realise its mandate.
” It is imperative to highlight the ongoing support of the government, particularly in approving initiatives aimed at fulfilling the mandate of the Nigeria Customs Service (NCS). Among these initiatives, notable is the granting of a 90-day window to owners of uncustomed vehicles, facilitating the payment of appropriate duties on previously imported vehicles into the country. Members of the public are strongly advised to avail themselves of this opportunity to regularize their papers, as failure to do so will result in applicable penalties.

“Additionally, the government’s decision to reopen the Northern Borders with Niger Republic holds significant importance. This action is expected to boost trading activities in those areas. With potential smugglers now reconsidering the legitimacy of trading through approved routes, this decision stands as a pivotal move “. he said

On the challenges the NCS encountered during the period under review, Comptroller Adeniyi said,” During the quarter, the NCS encountered several systemic challenges that impeded our ability to fulfil our statutory responsibilities effectively.
“These challenges encompassed issues 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. Additionally, 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 NGN 951.94 per USD 1 in January 2024 to a peak of NGN 1,662.35 per USD 1 in February 2024. While a singular exchange rate of NGN
951.94 per USD 1 was maintained in January, February witnessed 15 different spot rates ranging from NGN 951.94 per USD 1 to NGN 1,662.35 per USD 1. March saw a total of 13 different spot rates applied, ranging from NGN 1,303.84 to NGN 1,630.16.
“These fluctuations resulted in an average applied exchange rate of NGN 1,314.03 per USD 1 in the clearance of Customs goods during the quarter”.

He added that Repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting and disrupting activities. Beyond the speculation regarding potential gains it may have on NCS revenue, the implications on transaction volumes are significant and outweigh any possible benefits” he said

 

He stressed that “These concerns are already manifesting in current activities, with the potential for lagged effects in the coming months. Mindful of these implications on the trading public and the overall economy, the NCS, with the support of the Honourable Minister of Finance, has initiated periodic consultations with the Central Bank of Nigeria (CBN) to mitigate the potential impact of exchange rate fluctuations on import activities.” the CG noted.

He said the relative stability in the past days can be attributed to the interventions of the Honourable Minister of Finance and the Governor of the CBN.

“Furthermore, the NCS encountered non-operational challenges stemming from deliberate attempts by malicious actors to undermine the reputation of the Service. It is crucial to underscore that the NCS remains resolute in addressing genuine, evidence-based observations, as we have consistently done in the past. Constructive, fact-based criticisms channelled through appropriate means are always welcomed by the Service, as they keep us vigilant in fulfilling our commitment to the crucial responsibilities entrusted to us.

Despite these challenges, we are steadfast in prioritizing transparency and accountability in all our operations, reaffirming our dedication to serving with integrity and excellence” he said.

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