Customs declares zero tolerance to non compliance, indiscipline in 2024

The Nigeria Customs Service has declared zero tolerance to indiscipline and non compliance by traders in 2024.

Comptroller General of Customs, Adewale Adeniyi, who gave the warning at a media briefing in Abuja on Wednesday to review activities of the NCS in 2023 said it is imperative for all stakeholders and officers to adhere strictly to established procedures and regulations.

Speaking, he said, “Maximum cooperation is expected from every stakeholder in the customs operations. The success of our collective efforts depends on the discipline and commitment of each member. Let this be a year where every action is aligned with the principles of efficiency, transparency, and revenue optimization with the overall aim of contributing meaningfully to the tributing meaningfully to the economic prosperity of our nation.”

Reeling out the performance of the Service in the area of revenue generation in the fiscal year 2023, Adeniyi said the NCS achieved a landmark feat with a total revenue collection of N3.20trillion.

He said the revenue figure represented a 21.4% increase compared to N2.64trillion recorded in the preceding year but fell short of the N3.68trillion target for the year by N478billion in the year under review.

Adeniyi said the growth aligns with the NCS’s consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022 adding that the “consecutive
expansion in revenue underscores the Service’s sustained efforts in optimizing
revenue collection for the Federal Government.”

He said the year was marked by operational challenges including lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps, which were compounded by delays in policy implementation and socio-political factors.

The CGC added 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, which temporarily impacted purchasing power and overall economic activities also affected the Service revenue performance.

He said the transition of power to the President Tinubu-led Administration also 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, further added to complexity of the business environment.

According to him, 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 NGN 1.84 trillion.

“However, a positive transformation occurred in the later part of the year,
following my appointment as the Comptroller-General in July. 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 6.71% for the first time in 2023.

“Monthly revenue collection for the latter half of the year averaged NGN 332.9 billion, a substantial increase from the initial NGN 201.7 billion recorded in the first half of the year. This positive trend can be attributed to strategic measures, including the immediate establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, streamlining enforcement under the Federal Operations Unit (FOU).

“Additionally, strategic reassignments of Customs Area Controllers, the creation
of an ideas bank, and extensive stakeholder engagements collectively contributed to this impressive resurgence.

“The improved revenue collection in the latter half of 2023 played a crucial
role in significantly reducing the revenue shortfall by 10%, decreasing from NGN
532 billion to NGN 478 billion by year-end. This calculation is based on the
government’s projected revenue collection by the Nigeria Customs Service (NCS) of NGN 3.684 trillion and the actual collection of NGN 3.206 trillion.

“Moreover, the deficit in NCS revenue collection can be ascribed to
deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy. Specifically, the government approved a
concession of NGN 2 trillion, incorporating select dutiable items under the new Tariff heading Chapter 99.

“This policy shift resulted in the exemption of duty payments on certain dutiable goods, previously falling within a duty range of 5% to 10%. The overarching objective of these granted waivers and concessions was twofold: to stimulate development across diverse economic sectors and to bolster the nation’s overall peace and security, “the Customs boss said.

In the area of anti smuggling, Adeniyi said the NCS sustained its vigorous campaign against smuggling and illicit
trade, culminating in 3,806 seizures with a Duty Paid Value totalling NGN 16,
049,023,262.

He said the seizures included arms and ammunition, artifacts and antiquities, illicit drugs, expired food produce, and endangered species of flora and fauna.

Adeniyi said the NCS also
achieved 52 convictions, with 11 specifically linked to the illicit trade in
Animal/Wildlife.

“Noteworthy is the international acknowledgment garnered for the Service’s efforts in combating this illicit trade in Animal/Wildlife. This
steadfast commitment underscores the NCS’s dedication to protecting Nigerian
society, maintaining a resolute stance against smugglers, and diligently
dismantling their operationsoperations,” he said.

However, Adeniyi said the Service remained committed to facilitating the achievement of the newly set revenue target of N5. 079 trillion, which is aligned with the government’s economic objectives for 2024.