Eromosele Abiodun posits that the Comptroller General of the Nigeria Customs Service, Bashir Wale Adeniyi's promise to embrace a new era of excellence has been fulfilled as evidenced in the record breaking N5.1 trillion revenue generation
In his maiden address to the officers and men of the Nigeria Customs Service (NCS) on assumption of office tagged, "Embracing a New Era of Excellence," Comptroller General of the NCS, Bashir Wale Adeniyi said: "Today, we stand at the precipice of an exciting future, one that builds upon the achievements of the past and takes us even further. Our administration is committed to adopting a bottom-up approach, where the needs of our dear nation take precedence over everything else. We will prioritise efficiency in service delivery as the bedrock of trade facilitation and revenue generation. No longer shall encumbrances impede trade; we shall dismantle obstacles and foster a new culture of consultations and compliance."
He added, "In order to achieve our objectives, it is imperative that we bridge the current human resource gap within our ranks. We recognise the importance of capacity building and career advancement for our officers. The administration will work diligently to implement career advancement opportunities approved by the board, ensuring that competence remains the sole criterion for assigning responsibilities and measuring effectiveness. Our focus is on cultivating a highly skilled workforce that is equipped to face the challenges of a rapidly changing world."
Eight months down the line, Adeniyi has lived this talk. Anything to the contrary is malice. The following statistics tells the story. In the first quarter of this year, the NCS demonstrated remarkable performance in revenue collection, collecting a total revenue of N1,347,675,608,972.75. The collection for Q1 represented a substantial increase of 122.35 per cent, compared to the same period in 2023, when it report N606,119,935,146.67. A month-by-month analysis illustrated the service's impressive growth trajectory. In January 2024, revenue collection surged by 95.60 per cent, reaching N390,824,148,326.55 from N199,809,974,327.52 recorded in January 2023. The upward trend continued in February 2024, with a staggering 138.68 per cent growth, elevating revenue collection to N450,209,267,557.15 from N188,625,011,386.87 in February 2023.
By March 2024, the revenue collected by NCS grew by 132.76 per cent from N217,669,949,432.28 to N506,642,193,019.05. When compared to the federal government's annual revenue target of N5.07 trillion for the NCS to collect in 2024, the target translates to a monthly revenue target of N423 billion. The NCS reported an average monthly revenue growth of 6.2 per cent over the set monthly target and a cumulative revenue collection of 18.6 per cent, equivalent to N78,675,608,972.75 over the set quarterly target of N1.269 trillion.
Also, the NCS recorded a total of 572 seizures, encompassing various items valued at N10,593,099,654.50 in Duty Paid Value (DPV). Notably, January saw 111 seizures amounting to N842,992,751.50 in DPV, while February marked the highest seizure numbers of 432, totalling N3,704,703,350.34. The second quarter of the year was even better as the NCS has reported N2.74 trillion revenue, surpassing its targets by 8 per cent, with e-auctions and duty windows boosting growth. The performance also represented a 127 per cent increase over the previous year's revenue.
The service collected N1.39 trillion in the second quarter of the year, exceeding the quarterly target by 10 per cent and 131 per cent increase over Q2 2023. The growth is attributable to the positive performance initiatives; including the e-auction platform which generated over N1.34 billion, and the 90-day duty payment window for uncustomed vehicles which raked in N4.37 billion.
Surpassing 2024 Revenue Target
Continuing in the same trajectory, the Nigeria Customs Service, a few days ago announced that it has collected N5.079 trillionn revenue, exceeding its revenue target for 2024.
Adeniyi, disclosed this at the 2024 Comptroller-General of Customs Conference in Abuja.
The conference was themed, "Nigeria Customs Service: Engaging traditional and new partners with purpose." He expressed optimism in the service's capacity to achieve more for the economy.
"Our strategic engagements and collaborative approaches have yielded remarkable results across our core statutory responsibilities. I am pleased to announce that yesterday November 12, 2024, the NCS hit its 2024 revenue target of N5.07 trillion collecting N5.079 trillion with more than a month remaining in the fiscal year," Adeniyi said.
Adeniyi stated that the exceptional performance projected to exceed the service's target by 10 per cent validates their partnership-driven approach to revenue collection and trade facilitation.
According to him, the achievement is not merely about numbers, "it demonstrates how enhanced stakeholder collaboration, improved processes, and modernized systems can deliver tangible results for the nation's economy."
He stressed that the momentum of the NCS's modernisation initiatives continues to build and yield immediate benefits for the stakeholders.
Speaking on the trade facilitation strides of the service, Adeniyi said that the Authorised Economic Operators now has six beneficiaries in its pilot phase, carefully selected based on stringent compliance criteria.
He added that 31 requests had been processed under an advance ruling program with 12 rulings issued adding that 75 per cent were completed in October following our stakeholder sensitization efforts aimed at fostering quicker customs decision-making on import and export cargoes ahead of their arrival at the ports.
"Additionally, the introduction of 24-hour cargo clearance at major ports has significantly reduced dwell time; the completion of Nigeria's first Time Release Study now provides us with empirical data to measure and improve our efficiency; our enhanced risk management systems are streamlining operations; and the deployment of non-intrusive inspection equipment is accelerating cargo examination while maintaining robust controls," he said.
Meanwhile, the NCS's CG stated that in fulfilling their enforcement mandate, the service has achieved unprecedented success in protecting both the citizens and the economy.
"The scale of our intervention is reflected in seizures valued at N28.1bn and counting in 2024 alone. These seizures span critical areas of national concern from wildlife items and arms and ammunition to narcotics and pharmaceutical products," Adeniyi stated.
He added that an important moment in the service's enforcement strategy was the declaration of a state of emergency at major ports, "which led to the interception of 48 containers of illicit pharmaceutical items and narcotics, significantly disrupting the flow of potentially harmful products."
He vowed that through strategic operations, the service would continue to intercept and seize prohibited items that pose direct threats to public health and safety.
He said that the enforcement activities have been particularly impactful in addressing items that could worsen our current economic challenges.
Adeniyi lauded the service Operation Whirlwind which is a joint initiative with the guidance of the Office of the National Security Adviser and the support of the Nigerian Midstream and Downstream Petroleum Regulatory Agency to suppress fuel smuggling.
He reiterated that the joint initiative to combat petroleum product smuggling demonstrates how inter-agency cooperation can effectively protect national resources and ensure economic stability.
Federal Government Reforms
Speaking, President Bola Tinubu, who was represented by the National Security Adviser (NSA), Malam Nuhu Ribadu, said building on foundational reforms, the government had expanded focus to strengthen the country's global trade and investment position, stressing that the strategic initiatives have enhanced trade facilitation, and modernised port infrastructure, and streamlining business processes to reduce trade barriers.
He said his administration's commitment to creating an enabling business environment had resonated with the international investment community adding that confidence in the economy is reflected in the significant surge in foreign direct investments.
Notably, the president said the results of his administration's initiatives across the NCS' core mandates had been encouraging, adding that the service had shown remarkable progress in revenue generation, enhancing the government's capacity to fund critical national development projects.
The president particularly praised customs under Adeniyi for strengthening Nigeria's position as a trade-friendly nation through strategic reforms, particularly in export promotion and port efficiency, noting that this had contributed significantly to improved global ranking and ease of doing business for the country.
He said the service had demonstrated that effective trade facilitation could coexist with robust regulatory compliance, as evidenced by its enhanced border security and anti-smuggling operations.
Tinubu said, "These achievements affirm our administration's belief that public institutions can effectively drive transformative change when adequately aligned with national objectives. While these results are encouraging, they represent only the beginning of what we can achieve through focused institutional reforms and alignment with national objectives.
"It is, therefore, fitting that this conference centres on the theme "NCS Engaging Traditional and New Partners with Purpose." This theme reflects our administration's broader vision of fostering strategic partnerships and collaborative approaches to governance and economic management. It acknowledges that sustainable progress in today's interconnected global economy requires us to strengthen existing alliances while building new ones, always guided by clear purpose and shared objectives."
The president also assured the NCS that his administration remained committed to supporting its modernisation and reform initiatives, stating that "We will continue to provide the necessary policy backing and enablement to strengthen the service's capacity to deliver on its mandates. This includes support for technological advancement, infrastructure development, and capacity-building programs that align with global best practices."
Tinubu further reassured Nigerians that things were changing for the better especially in terms of the security situation in the country, noting that terrorists were being neutralised on a daily basis and kicked out of the country.
He said gone were the days when career officers in customs were jettisoned in the appointment of its leadership.
The president said, "When I assumed office last year, I set out with a clear and unwavering vision - to strengthen Nigeria's economic base and deliver positive growth and development for the benefit of all. 18 months later, the vision remains unchanged. In pursuing this vision, we have built upon existing foundations while introducing necessary reforms to adapt to our evolving economic realities. Our focus has been on strengthening what works, refining what needs improvement, and introducing new initiatives where gaps exist. We recognised that specific economic policies, though useful in their time, needed to be realigned with current global economic dynamics to better serve our national interests and the well-being of our people."
Okonjo Iweala Commend Reforms
Addressing the conference virtually, the Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, said to achieve the country's ambitious growth targets of 2050, "we will have to shift gears and start comparing ourselves with global leaders in facilitating trade and try to match their performance."
Okonjo-Iweala, who commended ongoing trade reform in the customs, however, noted that there's still "much more room to improve".
She also disclosed that the WTO members would be reviewing Nigeria's trade policies this week, adding that the WTO Secretary-General's Report on Nigeria's Trade Policy Review will provide valuable insights on the country's trade policy environment and how it could be improved.
She further acknowledged that customs is also piloting the new Authorized Economic Operator scheme that promises to speed up trade for authorised companies if implemented well, noting that border agencies are working together to try and implement joint inspections.
She said customs reforms complement the government's move to normalise the foreign exchange regime and remove restrictions on the use of foreign exchange for some imports, both of which will help to boost trade adding that much needed to be done in this regard.
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She said, "Let me highlight a few potential areas for future reform. The first is risk management. In many developed economies, the share of consignments elected for physical inspection is lower than 1 per cent, while in Nigeria it is around 90 per cent, with an additional 9 per cent of consignments scanned.
"Without improving risk management and reducing inspection rates accordingly, speeding up port and border clearance in a meaningful manner would be impossible. Of course, better risk management will have to go hand in hand with better compliance by firms, improved targeting and feedback from inspections, and less discretion on the part of individual officials to ensure customs' own rules and regulations are predictably and consistently applied, all coupled with effective sanctions.
"Better risk management, information sharing among agencies, and faster clearance will all contribute to reducing delays. One of the biggest problems we face in customs in Nigeria is this issue of discretion on the part of individual officers. We all know why. So, it is also an area where we have to work hard to convince officers that if we don't succeed and make changes here, we will not visibly improve on delays."
ANLCA Applauds NCS
Commenting on the performance, the National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Emenike Nwokeoji, commended the NCS for exceeding its 2024 revenue target. Nwokeoji hailed the achievement as a testament to the agency's dedication to fiscal responsibility.
"On behalf of the Association of Nigerian Licensed Customs Agents, we are sharing this success with you. Your happiness is ours because every kobo that was generated was declared by a licensed customs agent. If there are any infractions in these declarations, the first person to bear the brunt is the licensed agent, whose practicing license would be suspended," he said.
Nwokeoji emphasised the critical role of customs agents in revenue generation and trade facilitation, referencing the Nigeria Customs Service Act 2023. "The Act recognizes us as customs representatives. We are here representing you and helping in trade facilitation and revenue generation," he stated.
While celebrating the Customs' revenue milestone, Nwokeoji also urged the agency to address the issue of multiple checkpoints on port access roads, which he argued undermines efficiency and tarnishes the NCS's image.
Nwokeoji praised the Adeniyi for organising training sessions for clearing agents across the zones and called for more initiatives to ensure Customs and agents operate in alignment.
"We appreciate Adeniyi for the ongoing training programs. However, we request more of such sessions to ensure customs officers and agents are on the same page," he said.
The ANLCA president also proposed the creation of a dedicated forum for resolving grievances between Customs and agents. "We need a platform where agents and Customs can discuss and iron out their grievances in-house," he suggested, emphasizing the importance of collaboration to foster mutual understanding and efficiency in operations.
