Customs CG raises concern over import decline, says Service may miss N3.6trn revenue target for 2023

The Comptroller General of Customs, Adewale Adeniyi, has expressed concern over drop in import volume through the nation’s seaports, stating that should the trend continues, the Service would not be able to achieve its N3.6trillion revenue target for 2023.

Adeniyi who stated this while addressing protesting clearing agents at Ports & Terminal Multi Services Limited (PTML) command in Lagos on Friday also said that the Service should not be blamed for increase in import duty noting that Customs duty has not changed.

Recall that clearing agents had on Thursday raised an alarm that the NCS had increased import duty by 200 percent, a development they say would further trigger inflation in the country.

Adeniyi, however, explained that the reason for the hike in Customs duty on imported cargoes was due to the rise in foreign exchange rate and the free fall of the naira.

He said the high exchange rate which skyrocketed import duties is not only affecting clearing agents but the Service as well.

According to him, the increase in exchange rate has led to drastic drop in volume of import into the country lamenting that the situation will impact negatively on Customs revenue generation.

He said, “Customs duty has not changed. What we have extant is from 2022 to 2026 and there hasn’t been any change as far as I am aware on the duties to each of our tariff lines. The tax base for all these items are the same. When we talk about the tax base, we are talking about the Cost, Insurance and Freight.
If we are not deceiving ourselves, you know what has changed. It is the exchange rate and the last time I checked, Customs does not manufacture dollars.

“So the issue about the exchange rate is not that of the agents. It does not concern agents or Customs alone. Some people might talk about the fact that our revenue will increase, but what will happen to cargo.

“We have just walked across the whole of this terminal, you have seen the situation and the direct impact on this terminal alone. The terminal is no longer what it used to be. It is practically empty. The vehicles that are there are also not the type we used to see in those days. Most of the vehicles I saw here are accidented vehicles and there are so many implications for this.

“Even though we really don’t get revenue from vehicles but have we imagined what is also happening in the other terminals where we have high duty container goods? So it is affecting everybody. In terms of cargo, we know that the volume is also going down by the day.

“It is also paining us because we are not going to get the revenue that we need. Our revenue this year is N3.6 trillion. We cannot achieve N3.6trillion with what we are seeing here and the situation here is not different from other places. For you I also know the implication- you are not having enough jobs.

“So it is not about demonstration or carrying placards, it is about us collectively taking action that will help to shore up the value of the naira,” he said.

The Customs boss urged the cleariing agents to shift focus from import to export, stating that the sure way to earn foreign exchange and strenthen the currency is improved exports.

“What will bring dollars for us is a collective action of all of us to reverse the trend that we are having. It is the trend of overwhelming reliance on imports alone. We need to devote this kind of energy and concern that we are giving to import to channel it to export so that we can earn foreign exchange for the country.

“We must begin to show placards to encourage exports. We must demonstrate that export must be encouraged. I dont see any of you taking action for export. That is what will bring food to our table and encourage more dollars into our economy and that is what we help us to increase the value of the naira.

“We need to be very delibrate about it. We should not just be bringing in, we must also learn to export to the rest of the world

“That is where the real conversation is for us who are working around the port. There won’t be any magic formula to it.

“There are other areas which President Tinubu is also looking at. The non-oil export and the mining sector. Collectively, it is our hope that this will help us to earn more forex and reduce the pressure on the naira,” he said.