• Promises to end petroleum products smuggling
The Nigeria Customs Service (NCS) yesterday said it would align with the Federal Government’s policy to realise its N5.079 trillion revenue target this year.
Addressing a press conference in Abuja, the Comptroller-General of Customs (CGC), Adewale Adeniyi, noted that the service exceeded its 2023 target to hit N3.2trillion revenue generation.
He said the positive trend could be attributed to strategic measures, including the establishment of a Revenue Review Recovery Team and the dissolution of its Strike Force Teams, streamlining enforcement under the Federal Operations Unit (FOU).
The NCS expressed commitment to end petroleum products smuggling this year and block attempts to smuggle weapons and other contraband into the country.
“Our zero approach towards smuggling, especially that of petroleum products out of the country – rice, arms and ammunition – would be rigorously enforced.
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“We remain resolute on addressing border management challenges, balancing security concerns with trade facilitation,” he said.
The NCS boss added that the strategic reassignments of Customs Area Controllers, the creation of an ideas bank, and extensive stakeholder engagements contributed to this impressive resurgence of revenue in 2023.
According to him, for the fiscal year 2024, the NCS has been allocated a new revenue target of N5.079 trillion, aligning with the government’s economic objectives.
“This target signifies the government’s confidence in the NCS’s capabilities and underscores the Service’s important role in contributing to the nation’s fiscal wellbeing.
“The strategic initiatives detailed above, alongside other operational reforms, are anticipated to play a crucial role in achieving this revenue goal,” CGC Adeniyi.
Adeniyi said as the NCS addresses the challenges and opportunities in 2024 the Service is steadfast in its commitment to implementing these strategies and exploring practical approaches to meet the heightened revenue target.
He noted that this commitment aligns with the NCS’s ongoing dedication to efficiency, excellence, and positive contributions to Nigeria’s economic landscape.
The Comptroller General said notwithstanding these concerted efforts, NCS is also conscious of the topical trends and issues that will impact the Service operations in 2024.
According to him, “they include: a. Alignment with Government Policy Direction. The President Bola Ahmed Tinubu led administration has identified eight priority areas, including food security, poverty eradication, growth, job creation, access to capital, inclusion, rule of law, and fighting corruption.
“In addition to these priority areas, NCS has identified 21 relevant areas outlined in the Policy Advisory document.
“These areas will continue to shape NCS’s operations throughout 2024, aligning with the broader policy goals of the government.”
He further noted that the year 2024, dedicated by the World Customs Organization (WCO) to engaging traditional and new partners with purpose, underscores the importance of collaboration.
Adeniyi said that building on the foundations laid during the just concluded Comptroller-General of Customs Conference in December 2023, a joint declaration by NCS and stakeholders commits to working more effectively.
He vowed that the “NCS will rigorously pursue these engagements based on timelines and deliverables.”
On last year’s revenue collection, Adeniyi said, “in the fiscal year 2023, the NCS achieved a significant milestone by recording a total revenue collection of N3,206,603,417,315.47, marking a noteworthy 21.4per cent increase from the preceding year’s total revenue of N2,641,616,673,501.83.
“This growth aligns with the NCS’s consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022.
“The consecutive expansion in revenue underscores the Service’s sustained efforts in optimizing revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions.”
The NCS boss noted that the achievement is particularly remarkable given the challenges within the operational environment. Operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delays in policy implementation and socio-political factors.
He recalled that the anxiety associated with a major election year, the prolonged cash crunch linked to the introduction of higher denominations of the new Naira bills, temporarily impacted purchasing power and overall economic activities.
According to him, 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.
Adeniyi noted that these challenges led to a revenue shortfall of NGN 532 billion in the first half of the year, falling short of the projected revenue target of N1.84 trillion.
He said however, a positive transformation occurred in the later part of the year, following his appointment as the Comptroller-General in July.
Continuing, he said: “This was accompanied by a merit-based reconstitution of the management team, resulting in a significant shift that enabled the Service to exceed monthly revenue targets by 6.71per cent for the first time in 2023.
“Monthly revenue collection for the latter half of the year averaged NGN 332.9billion, a substantial increase from the initial N201.7 billion recorded in the first half of the year.”
Adeniyi added that the NCS had conducted vigorous campaign against smuggling and illicit trade in 2023 which resulted in 3,806 seizures of illicit items, including artifacts, antiquities, drugs, food products, and endangered species of flora and fauna, among others.
“Remarkably, we also achieved during this period, a total of 52 convictions, 11 of them specifically linked to illicit trade in animal wildlife.
“This is also a record performance through diligent prosecution of our cases and the successful conviction of some of those criminals that were apprehended,” the C-G said.
Adeniyi said that the service would continue to sanitise trade activities and strengthen its anti-smuggling strategies, as part of efforts to achieve its 2024 revenue target of N5.7 trillion.
He announced that the service in 2023 generated N3.2 trillion, the highest ever recorded in the history of the NCS.
According to him, this represents 21.4 per cent increase in the revenue generated compared to the same period in 2022.
He explained that their 2023 performance was remarkable given the fact that the NCS recorded revenue shortfall of N532 billion in the first half of 2023.
He however said that the service still has operational challenges in the area of inadequate infrastructure, delay in policy implementation, social and political factors.
Adeniyi explained that measures such as the establishment of a revenue recovery team, streamlining of enforcement operations and extensive stakeholders engagement were being taken to reverse the operational challenges.
The C-G pledged that the service services would adopt innovative measures and deploy technology in its operations to align with global best practices.
He added that they would revamp the electronic auction platform for more robust operations, prevent infiltration by hackers, and ensure transparency and efficiency.
Adeniyi added that one of NCS strategy in 2024 would be to provide continuous update of the exchange rate to guide personnel in ensuring optimal revenue generation, and adapting to changes in the operating environment.
