Customs Rakes In N6.1Trillion In 2024, Surpasses Revenue Target
Customs Rakes In N6.1Trillion In 2024, Surpasses Revenue Target
By Asuquo Nuwak
•••Reaches new heights in revenue collection, trade facilitation, enforcement activities.
The Nigeria Customs Service has again recorded another unprecedented performance in revenue collection for the year 2024. The Service during the period under review collected a total sum of ₦6,105,315,543,489.50, surpassing the target of ₦5,079,069,866,085.50 by ₦1,026,245,677,404.00, representing a 20.2% increase above the target.
This remarkable achievement represents a significant 90.4% increase from the 2023 collection of ₦3,206,583,002,675.6The report said the growth is historic as it marks the highest year-on-year increase recorded by the Service in recent times, surpassing the 52.24% growth recorded in 2022 by 38.18 percentage points.
Additionally, the Service achieved another milestone in October 2024 by recording the highest monthly collection ever of ₦603,171,859,991.97.
The Comptroller-General of Customs, Bashir Adewale Adeniyi, disclosed this recently while addressing Journalists and general public at the Nigeria Customs corporate Headquarters, Maitama, Abuja, on the activities and achievements of Nigeria Customs Service for the year 2024.
The report stated that the total revenue collected for 2024 comprises three main components, which included
Federation Account Collections with the sum of ₦3,657,063,981,445.42 collected into the federation account, which consist of import duty, excise duty, fees, e-auction proceeds, and CET levy.
Further breakdown of the components included
non-federation account levies, with a total of ₦816,902,844,844.73 collected as non-federation account levies.
Furthermore, other component included
Value Added Tax (VAT) which the Service collected the sum of ₦1,631,348,717,199.35 as VAT on imports.
It is pertinent to note that these collections were achieved despite significant concessions granted to support various sectors of the economy, totalling ₦1,682,302,648,880.6
The report said these concessions comprised ₦723,000,081,776.68 in import duty waivers, ₦372,649,650,951.72 in other levy concessions, and ₦586,652,916,152.27 in import VAT relief.
According to the report, these strategic concessions were granted to stimulate economic growth, support industrial development, and enhance the overall business environment in line with government policy objectives.
Beside this, the 2024 concession value is said to represent a significant reduction from the ₦3,959,868,268,993.18 recorded in 2023. In clear terms, this reduction is a direct result of the enhanced monitoring mechanisms and strategic reforms aimed at blocking loopholes and eliminating abuses in the concession granting process, while ensuring that only genuine and qualifying enterprises benefit from these incentives.
These achievements, according to press statement were made possible through the service continuous alignment with the policy objectives of His Excellency, President Bola Ahmed Tinubu, under the astute guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and the support of Management and the entire staff of Nigeria Customs Service.
Comptroller-General of Customs is quoted as saying that: “At the beginning of 2024, the Service made severally commitments towards modernizing our operations and enhancing service delivery. Despite our impressive revenue performance, we remained conscious of the need to strike a balance between revenue collection and trade facilitation. This balance was evident in our commitments at the beginning of the year and also served as a milestone for gauging performance throughout 2024. They were further reiterated during the Comptroller-General of Customs Conference held later in the year”.
In the words of Bashir Adewale Adeniyi: “The trade performance data for 2024 reflects significant growth in trade value despite global economic headwinds. The Service processed imports with a Cost, Insurance, and Freight (CIF) value of ₦60.29 trillion in 2024, representing a remarkable 117.4% increase from ₦27.74 trillion in 2023. This was achieved through 1,262,988 import transactions, handling a total mass of 15.35 billion kilograms. The higher value recorded despite an 8.2% decrease in transaction volume from the previous year’s 1,376,514 transactions indicates a shift towards higher-value goods in our import trade portfolio”.
Apart from this, he said the Service export trade performance was equally impressive, with the total CIF value rising significantly to ₦136.65 trillion in 2024 from ₦42.77 trillion in 2023, marking a 219.5% increase. In addition to this, he stated that the number of export transactions remained relatively stable at 38,199 compared to 38,294 in 2023, the Service witnessed a substantial increase in export volume, processing 12.35 billion kilograms in 2024, compared to 3.70 billion kilograms in 2023.
According to the report, this 234 percent increase in export mass, coupled with the higher value, indicates a robust growth in Service export trade and suggests increasing competitiveness of Nigerian products in the international market.
The Customs Boss announced that the total trade value handled by the Service in 2024 amounted to ₦196.94 trillion, compared to ₦70.50 trillion in 2023, representing a 179.3% increase. This substantial growth in trade value, achieved with fewer but more valuable transactions, is evident of the increasing sophistication of Nigeria’s international trade and the effectiveness of the Service trade facilitation measures.
Adeniyi is quoted as disclosing that: “In line with our pledge to adopt global best practices in trade facilitation, improve operational excellence, and enhance security, I am pleased to report significant progress in implementing these commitments. The Service successfully implemented various measures to enhance operational efficiency through modern procedures enabled by the new NCS Act”.
He highlighted some of the Service key achievements and their impacts, which included
Advanced Ruling System. He announced that the Advanced Ruling system, launched in early 2024, introduced a pre-arrival classification and valuation mechanism that provides binding decisions to importers before shipment, while ensuring predictability in their customs transactions.
According to him, this system represents a significant shift from post-arrival classifications to pre-arrival decisions, thereby reducing delays and disputes in the clearance process. He added that during its first year of implementation, the system recorded 60 account registrations and received 38 applications for rulings on various aspects including classification, valuation, and other clearance-related concerns.
He further noted that out of these applications, 15 rulings were successfully issued covering transactions worth ₦102,929,244,384 in duty paid value, while 23 applications were rejected due to various factors including insufficient information, incomplete documentation, post-importation requests, unverifiable transaction values, and unclear sales agreements.
In order to to enhance participation and understanding of this initiative, he said the Service have scheduled a comprehensive stakeholder sensitization program beginning from January 15, 2025, in Lagos.
Further highlight of the Service key achievements and impacts included Authorized Economic Operator (AEO) Programme. Beside, the pilot phase of the AEO program has demonstrated significant improvements in cargo clearance times, with AEO-certified companies achieving an average release time of 43 hours, which is 5 hours better than the target clearance time of 48 hours.
The report said this represents a remarkable 66.9 percent reduction in cargo clearance time compared to pre-AEO status, where clearance took 5 days, and notably outperforms regular Economic Operators (EOs) who require 7 days for clearance.
He said that given these impressive results, the Service is set for full implementation of the program in the first quarter of 2025.
Furthermore, CGC Adeniyi highlighted some of the Service achievements and their impacts which included Time Release Study and International Partnerships. He announced that the Service comprehensive Time Release Study has been concluded, and the report is currently under review with plans for release before the second quarter of the year.
In addition to this, he said the Service enhanced strategic partnerships with various customs administrations worldwide are yielding tangible results through intelligence sharing, leading to major interceptions at the ports. According to him, these partnerships have also opened up capacity building opportunities for the officers and laid the groundwork for expanded engagements in the coming months.
In the area of technological infrastructure advancement, he said the Service has made significant stride towards digital transformation, which commenced pilot testing of its indigenously developed customs clearance platform with the support of the concessionaires under the Trade Modernisation Project, named ‘B’Odogwu’, in the fourth quarter of 2024.
According to CGC Adeniyi, the platform, which represents a major milestone in the Service digital capabilities, was initially deployed at the PTML command for pilot testing. The early results, according to the report, have been encouraging, with the platform processing transactions resulting in an aggregate revenue collection of ₦31 billion as of December 2024.
Comptroller-General Adeniyi said it is indeed gratifying to see how home-grown solutions are gradually enhancing the Service operational efficiency and ensuring seamless trade facilitation.
In the area of stakeholder engagement initiatives, Adeniyi said under the framework of the global customs community’s theme focusing on enhancing traditional and new stakeholder engagement in 2024, the Service intensified their engagements with existing stakeholders while forging new partnerships. He noted that the Service has strengthened collaboration with Partner Government Agencies (PGAs) and expanded the stakeholder base through new partnerships.
The report said, notable among these was the Service collaboration with the Healthcare Federation of Nigeria (HFN), which led to the establishment of working relationships aimed at addressing challenges in the clearance of medical goods. Essentially, he said this strategic partnership, supported by relevant PGAs in the health sector, aligns with President Bola Ahmed Tinubu’s administration’s policy focus on healthcare accessibility and affordability.
The report disclosed that the outcomes of these engagements have been encouraging, and the Service is optimistic that this collaboration will contribute significantly to making medical supplies more affordable for Nigerians through improved clearance processes and reduced administrative bottlenecks.
In the area of support for SMEs and export trade facilitation, he said in recognition of the opportunities presented by the African Continental Free Trade Agreement (AfCFTA), the Service implemented various trade facilitation initiatives to support Small and Medium Scale Enterprises (SMEs) and exporters. Thankfully, he said these efforts contributed significantly to the robust participation of Nigerian brands at the prestigious Biashara Afrika forum in Kigali in October 2024.
The report said, it was particularly gratifying that the Service innovative approaches received recognition from the AfCFTA Secretariat, culminating in an invitation to share Nigeria’s experience at the forum.
CGC Adeniyi noted that one of the high points of the Service trade facilitation initiatives was the significant recognition received both locally and internationally throughout the year.
The report said notable among these was the Service’s remarkable improvement in the Presidential Enabling Business Environment Council (PEBEC) rankings, where the Service advanced 33 places to emerge joint top five agencies in trade facilitation to validate the Service reform initiatives and tangible improvements in the Service cross-border trade facilitation efforts, despite notable security concerns.
In the area of anti-smuggling and enforcement,
he said in addition to balancing revenue collection with trade facilitation, there was also the security dimension arising from global and national actors that impacted the Service mandate to protect the society from the entry of harmful substances and the exit of restricted items.
Furthermore, the Service adapted its strategies to these evolving security challenges resulting in the 3,555 seizures throughout the year, with a dramatic 100.92 percent increase in the Duty Paid Value (DPV) of seizures from ₦17.56 billion in 2023 to ₦35.29 billion in 2024.
These seizures, with a Cost, Insurance, and Freight (CIF) value of ₦28.46 billion and total duty of ₦6.83 billion, highlights the scale of attempted economic sabotage prevented by the Service. The recorded seizures included traditional and emerging risks to Nigeria’s Economic and overall national security.
In the area of seizures of arms and ammunition, he said it is particularly noteworthy that the Service made seizures of arms and ammunition, including 900 arms, 113,472 rounds of ammunition, interception of narcotics and other illicit drugs, resulting in 105 seizures across various forms that was aided by the declaration of a state of emergency at the major entry points.
In addition to this, he stated that the Service also intercepted unauthorized pharmaceutical products, with 40 seizures including 175,676 pieces and 6,271 cartons of various medicaments valued at ₦3.04 billion, protecting public health from potentially dangerous counterfeit drugs.
The report noted that the Service’s enforcement activities also revealed evolving patterns in environmental and wildlife crimes, with 76 seizures of animal and wildlife products valued at ₦5.93 billion. Accordingly, the Service also maintained vigilance over trade-sensitive goods, as evidenced by the seizure of 183,527 bags of rice.
In addition to this, the Service made significant seizures of other restricted items including 3,785 bales of textiles valued at ₦945.9 million, various quantities of footwear, beverages, and other consumer goods, thereby protecting local industries and supporting the government’s economic diversification agenda.
Apart from this, the Service also recorded 397 seizures of vehicles valued at ₦5.64 billion, as the Service continue to enforce import regulations and protect government revenue.
The report hinted that mounting sophistication of smuggling networks also necessitated a corresponding elevation in the Service enforcement capabilities, leading to enhanced collaboration with national and international partners as well as the deployment of advanced detection approaches.
The report said worthy of note is the launch of operation Whirlwind with the support of the Office of the National Security Adviser (ONSA) and the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) under the Nigeria Petroleum Corporation Limited (NNPC Ltd).
According to the report, this operation resulted in the seizure of significant quantities of petroleum products totalling 1,716,656 litres from saboteurs diverting petroleum products intended for home use to neighbouring countries.
Most significantly, enforcement activities have yielded 55 arrests of suspects currently under investigations, as the Service continue to dismantle the criminal networks behind these activities. This comprehensive approach to enforcement, aligned with both national security objectives and international obligations, positions the Service as a crucial actor in the nation’s security architecture as the Service continue to facilitate legitimate trade.
In order to further strengthen the Service enforcement capabilities, the Service is actively expanding its technological infrastructure through the integration of geo-spatial technology and other cutting-edge solutions. These technological advancements, coupled with capacity building and enhanced intelligence gathering mechanisms, will significantly boost the Service surveillance and enforcement operations.
According to the report, the integration of these modern tools with the Service existing framework is a strategic investment in the future of customs enforcement, to ensure that the Service stay ahead of emerging threats as the Service continue to facilitate legitimate trade.
In area of capacity development and strategic human resource Management,
CGC Adeniyi said the Service has maintained its commitment to strategic human capital development throughout 2024, recognizing that the Service workforce remains their most valuable asset in achieving their mandate.
He said the Service capacity development initiatives were structured to enhance both individual competencies and organizational capabilities, ensuring that their officers are well-equipped to meet evolving customs administration challenges.
In the area of career progression, he announced that the Service sustained their commitment to merit-based advancement through the prompt conduct of promotion exercises.
Comptroller-General Adeniyi is quoted as saying that: “I am pleased to report that 4,291 senior officers were elevated to new ranks, while 1,419 junior officers also earned their promotions, marking one of the most comprehensive promotion exercises in recent years. Notably, our career advancement programme featured the exposure of newly promoted Comptroller cadre officers to strategic leadership courses, preparing them for higher responsibilities in customs administration”.
The report said the Service strengthened its human resource base through various capacity-building initiatives, while the Service training programs were strategically designed to align with modern customs practices, covering areas such as risk management, post-clearance audit, valuation, classification, and enforcement techniques. The report said the Service leveraged their international partnerships to expose officers to global best practices through virtual and physical training sessions with partner customs administrations.
In looking to the future, he said the Service have commenced the process of recruiting new officers to strengthen the Service workforce. In addition to this, he said the Service has opened its recruitment portal to receive applications from prospective recruits, marking the beginning of a comprehensive exercise to inject fresh talent into the Service operations.
The report revealed that this recruitment drive is strategically designed to address succession planning while bringing in needed skills for the Service modernization agenda.
In the area of investment in human capital development, he said investment in this regard remains central to achieving the Service modernization objectives and maintaining high standards of service delivery.
According to him, the Service will continue to prioritize capacity building and career development as essential components of the Service organizational strategy.
In the area of
infrastructure and facility development, CGC Adeniyi noted that the year 2024 marked significant progress in the Service infrastructure development agenda, with several strategic projects advancing towards completion.
In conclusion, he said a major milestone was the commencement of the Service phased relocation to the new Corporate Headquarters building.
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