Oritsegbubemi Omatseyin
Lagos — The Nigeria Customs Service said it has generated N4.2 trillion as revenue in the first nine months of 2024, marking a 33% increase from the N3.21 trillion collected for the entire year of 2023.
This performance leaves the service with an outstanding N981 billion, which it needs to meet in the fourth quarter to meet its full-year target of N5.1 trillion.
According to a document from NCS, the service said that improvements in import duty collections were due to measures implemented by the Central Bank of Nigeria and commercial banks, particularly the adoption of digital infrastructure. These advancements have enhanced transparency and accountability, enabling more efficient import duty payments through integrated e-payment systems that minimise revenue leakages.
The document revealed that 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 document stated.
Mr. Abayomi Duyile, Chairman of Ports & Terminal Multipurpose Limited, attributed the revenue surge to fluctuations in the exchange rate. He pointed out that although imports have decreased compared to last year, the higher exchange rate of over N1,600 to $1, up from less than N1,000, has resulted in increased revenue.
He stated: “Exchange rate is the major cause. Look at the volume now, it is low compared to that of last year, you will find out that they are making more money. Because if the volume is low and they are making more money it is an exchange rate factor.
“As of last year, I think the exchange rate was less than N1,000/$. 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.”
Similarly, Sikiru Remilekun, Youth Leader of the Tincan Island Chapter of the Association of Nigerian Licensed Customs Agents, cited the introduction of Vehicle Identification Numbers (VIN) for vehicle valuation as a key factor as well as the exchange rate.
Remilekun said: “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.”
In addition, the Nigeria Customs Service, Port Terminal Multiservices Limited Command, announced a revenue collection of N239 billion for the same period. An increase of N53 billion or 29% compared to N185 billion in 2023.
Customs Area Controller Tenny Daniyan reported that the command made seizures valued at N28 million during this period, including arms and ammunition concealed within imported vehicles, thus preventing dangerous imports from entering the country.
