April 16, 2024

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Customs generates N1.34tr revenue, seizes N10.5bn goods in Q1 2024

The Nigeria Customs Service on Wednesday announced that it generated a total of N1.34trillion in the first quarter of 2024.

Comptroller General of Customs, Adewale Adeniyi, who disclosed this during a press briefing said the amount collected represents a 122.35% increase compared to the same period in 2023 where N606billion was generated.

He said, “In the first quarter of 2024, the NCS demonstrated remarkable performance in revenue collection. Total revenue collected during this period amounted to NGN 1,347,675,608,972.75. The collection for the first quarter represents a substantial increase of 122.35% compared to the same period last year, where NGN 606,119,935,146.67 was collected. Month-by-month analysis further illustrates the Service’s impressive growth trajectory.

“In January 2024, revenue collection surged by 95.60%, reaching NGN 390,824,148,326.55 from NGN 199,809,974,327.52 recorded in January 2023. This upward trend continued in February 2024, with a staggering 138.68% growth, elevating revenue collection to NGN 450,209,267,557.15 from NGN 188,625,011,386.87 in February 2023. By March 2024, the revenue collected by NCS grew by 132.76% from NGN 217,669,949,432.28 to NGN 506,642,193,019.05.

“When compared to the Federal government’s annual revenue target of NGN 5.07 trillion for the NCS to collect in 2024, the target translates to a monthly revenue target of NGN 423 billion. We are pleased to report an average monthly revenue growth of 6.2% over the set monthly target and a cumulative revenue collection of 18.6%, equivalent to NGN 78,675,608,972.75 over the set quarterly target of NGN 1.269 trillion, ”

In the area of anti smuggling operation, Adeniyi said the NCS recorded 572 seizures with a total Duty Paid Value (DPV) of N10.5billion.

Notable among the seized items are rice, petroleum products, motor vehicles, and textiles with 22 suspects detained in connection with the seizures.

In the area of trade facilitation, Adeniyi said the NCS processed 311,492 Single Goods Declarations (SGDs) for imports and 10,786 SGDs for exports within the review period.

He noted that while import transactions witnessed a decrease compared to the previous year, export activities
experienced a notable growth of 10.60%, particularly in January 2024.

He attributed the successes recorded to several factors, including: dedication of officers and implementation of new initiatives, such as the e-auction system that generated NGN 1.6 billion in revenue

Despite the notable achievements recorded, Adeniyi said the Service encountered systemic challenges, including non-compliance with regulations, infrastructure limitations, and decline in cargo throughput.

He added that significant fluctuations in exchange rates applied in customs clearance posed considerable difficulties, impacting transaction volumes and disrupting activities.

He said, “In the last quarter, a total of 28 rates were directed by the CBN, ranging from NGN 951.94 per USD 1 in January 2024 to a peak of NGN 1,662.35 per USD 1 in February 2024. While a singular exchange rate of NGN951.94 per USD 1 was maintained in January, February witnessed 15 different spot rates ranging from NGN 951.94 per USD 1 to NGN 1,662.35 per USD 1. March saw a total of 13 different spot rates applied, ranging from NGN 1,303.84 to NGN 1,630.16. These fluctuations resulted in an average applied exchange rate of NGN 1,314.03 per USD 1 in the clearance of Customs goods during the quarter.

“The repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting and disrupting activities. Beyond the speculation regarding potential gains it may have on NCS revenue, the implications on transaction volumes are significant and outweigh any possible benefits. These concerns are already manifesting in current activities, with the potential for lagged effects in the coming months. ”

He, however, noted that the NCS with the support of the Minister of Finance has initiated consultations with the Central Bank of Nigeria (CBN) to mitigate the potential impact of exchange rate fluctuations on import activities.

He attributed the relative stability in the past days to the interventions of the Minister and the Governor of the CBN.

 

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