Half year scorecard: Customs rakes in N2.74tn revenue, e-auction accounting for N1.34 billion

Surpasses previous year With over 127%

By Ezurike Ugochukwu

The Nigeria Customs Service (NCS) said it has raked in N2.74 trillion between January and June 2024 into the nations coffers.

This according to the Service surpassed the revenue target of N2.54 trillion target set for it by the Federal Government by 8 percent, and 127 percent increase over the previous half year revenue.
Of the total revenue of N2.74 trillion announced, whooping N1 34 billion was from the e-auction platform sales within the first half of 2024.

The half year performance report, was disclosed by Abdullahi Maiwada, National Public Relations Officer(NPRO) of the Nigerian Customs who highlighted the Service’s core mandates of revenue collection, trade facilitation, and societal protection.

Report he emphasised underscores the Service’s commitment to supporting the policy direction of President Bola Ahmed Tinubu’s administration, adding that it aligned with the pledge to deliver a transparent and accessible system under the leadership of Comptroller-General (CGC) Bashir Adewale Adeniyi and his management team.

He said the NCS had achieved remarkable success in the first half of 2024.

With a half-year revenue target of N2.54 trillion, the Service according to the Customs image maker collected N2.74 trillion revenue, surpassing the target by 8% and marking a 127% increase over the previous year’s revenue. N1.395 trillion was collected for the second quarter, exceeding the quarterly target by 10% and representing a 131% increase over Q2 2023.

Maiwada

Key initiatives contributing to this success according to Maiwada, include the e-auction platform, which generated over N1.34 billion, and the 90-day duty payment window for uncustomed vehicles, adding N4.37 billion to the revenue.

“These measures have significantly enhanced transparency, compliance, and efficiency in customs processes, underscoring the NCS’s commitment to excellence.

“The Service intensified its anti-smuggling operations in the first half of 2024, resulting in notable achievements. From January to June 2024, the NCS made 2,442 seizures with a Duty Paid Value (DPV) of NGN 25,520,652,942.87, which is 203% higher than the DPV of seizures in the first half of 2023. In the second quarter of 2024, the NCS made 1,334 seizures with a DPV of NGN 17,564,384,378, representing a 121% increase over the first quarter of 2024. The top items seized include wildlife items, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects in custody,” Maiwada added.

Trade facilitation in the words of Maiwada who is a Chief Superintendent of Customs(CSC) remains a core priority for the NCS, noting that in the first half of 2024, the Service processed 620,467 Single Goods Declarations (SGDs), reflecting a reduction of approximately 39% compared to the same period in 2023.

Despite this decline, he averred that NCS had implemented several key initiatives to simplify and expedite customs processes.

“These include reinforcement of NCS automation procedures, capacity-building programs for officers, and public-private partnerships to enhance customs clearance efficiency. These efforts are crucial for enhancing Nigeria’s trade competitiveness and supporting economic growth.”

Maiwada explained that despite the achievements, the NCS faced several challenges in the first half of 2024.

Parts of the challenges according to him include significant fluctuations in the exchange rate, a lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime. These challenges impacted the consistency of revenue collection and overall operational efficiency, He noted.

To address these challenges and enhance revenue collection, Maiwada disclosed that NCS implemented several strategies, including real-time system auditing, post-clearance audits, verification of documents for the Pre-Arrival Assessment Report (PAAR), ensuring compliance with import guidelines, and the implementation of a pilot test for the Authorized Economic Operators (AEO) scheme.

“Additionally, the NCS has recently introduced the Advance Ruling System (ARS), a legally binding decision on classification, valuation, and rules of origin before the importation or exportation of goods. “Other pragmatic measures implemented to increase revenue, despite a drop in cargo throughput, included establishing a robust framework for dispute resolution, launching Operation Whirlwind, reshuffling strategic-level officers and robust stakeholders’ engagement.

“The CGC commends all officers and men of the NCS for their diligence and commitment. He also acknowledges the stakeholders who have played significant roles in achieving this performance. He further reaffirmed the Nigeria Customs Service’s dedication to supporting the realisation of government policies for a better Nigeria,” the release stated.