Nigerian Customs Service Expected to Surpass N6.5 Trillion Revenue Target in 2025

Spread the love

By Sesan Rufus Awobiye

Recent developments indicate that the Federal Government is poised to set an ambitious revenue target exceeding ₦6.5 trillion for the Nigerian Customs Service (NCS) in 2025. This follows the NCS’s successful attainment of its 2024 revenue target of ₦5.07 trillion, a milestone achieved by November 12, 2024—over six weeks before the year’s end. By that date, the NCS had already collected ₦5.079 trillion, signaling its potential to exceed the projected figure.

End-of-Year Revenue Surge Expected

The Customs Service traditionally experiences a significant boost in revenue collection during the final quarter of the year, particularly in December. This is due to increased import activities associated with the festive season, such as Christmas and the Yuletide, when higher volumes of goods enter the country. Analysts anticipate that this trend, coupled with the NCS’s intensified revenue drive, will push total revenue for 2024 to ₦5.6 trillion or more by year-end.

2025 Revenue Target Projections

The Federal Government typically calculates the next year’s revenue target by adding a margin of 10% to 15% over the revenue achieved in the preceding year. Consequently, Customs’ strong 2024 performance suggests that its 2025 revenue goal will exceed ₦6.5 trillion, a significant leap aimed at sustaining fiscal momentum.

Leadership and Technological Innovations Driving Success

Under the leadership of Comptroller General Wale Adeniyi, the NCS has implemented an ICT-driven approach and fostered a culture of collaboration, both of which have contributed to its recent successes. Enhanced stakeholder relationships, process modernization, and the integration of technology into customs operations have streamlined revenue collection and trade facilitation.

These reforms have enabled the Customs Service to overcome challenges encountered in previous years. For instance, in 2023, the NCS fell short of its ₦3.67 trillion target, collecting ₦3.21 trillion instead. This shortfall was attributed to various factors, including the implementation of the Common External Tariff (CET), widespread use of import duty exemption certificates, and uncertainties in global trade.

– Revenue losses from the importation of goods under Chapter 99 of the CET were estimated at ₦2 trillion.

– Import duty exemptions and other statutory provisions led to an additional revenue deficit of approximately ₦1.8 trillion.

Strategic Partnerships and Security Measures

The NCS’s renewed emphasis on partnerships with critical stakeholders such as importers, customs agents, and the organized private sector has been central to its progress. By introducing innovative measures designed to ease trade processes and payment of duties, the NCS has improved its efficiency and revenue generation capacity.

In addition to fostering collaborations within the trade sector, Customs has strengthened synergies with other government agencies and security outfits, including the Nigerian Army. These partnerships facilitate intelligence sharing, which helps combat smuggling and boosts revenue collection.

Reforms to Drive Future Growth

Looking ahead, the NCS is expected to expand on its innovative reforms, such as:

The Advanced Ruling System: A framework that provides binding classification and valuation decisions for traders to enhance predictability and compliance.

Authorized Economic Operator (AEO) Program: A certification scheme for businesses that meet compliance standards, allowing for faster customs processing.

Time Release Studies: A system to identify and address bottlenecks in customs operations, ensuring efficient trade facilitation.

These initiatives align with the NCS’s mission to promote regulatory compliance, improve trade facilitation, and optimize revenue collection. Analysts predict that these measures will enable the Customs Service not only to meet but also to potentially surpass its 2025 revenue target.

The Path Forward

As the NCS continues its transformation under Comptroller General Adeniyi’s leadership, it remains a critical pillar of Nigeria’s economic framework. By leveraging technological advancements, strategic collaborations, and an aggressive revenue drive, the Customs Service is well-positioned to meet the Federal Government’s ambitious revenue expectations for 2025.