The Nigeria Customs Service (NCS) has expressed commitment to meeting its revenue target of N5.08 trillion for the 2024 fiscal year even as it generated N3.21 trillion in the preceding year of 2023.
The Comptroller General of Customs, Bashir Adeniyi, stated this when he appeared before the House of Representatives Committee on Customs and Excise in Abuja.
CG Adeniyi said though the Service had targeted the sum of N3.67 trillion in the outgone year but it was only able to generate N3.21 trillion owing to a combination of factors, assuring that it will meet this year’s target.
The Customs boss identified the factors that inhibited it from reaching its target for 2023 as importation of goods under the common external tariff, import duty exemption certificates, uncertainties, and anxieties.
He said: “In 2023, the revenue target for the Service was N3.67trn and remarkably, the Service collected a total revenue of N3.21trn from January to December 2023. When we compare what we collected in 2023 to what was projected as our target, there was a negative variance of N462.9bn, which represents 12.62 per cent of what was approved as revenue target.
“Though we didn’t achieve what we projected, but we want to say with all sense of modesty that we did our best. And when we consider all factors, we will appreciate the fact that we at NCS did the best we could.
“One of the factors was the huge import of goods under Chapter 99 of the common external tariff, which resulted in a revenue loss of over N2trn. When we compare this to the total revenue that we had, that was a whopping 63.35 per cent of our total revenue collection.
“Also, revenue due to import duty exemption certificates and other statutory provisions for the year (2023) was also in the region of N1.8 trn which was about 58.52 per cent of the total revenue generated. Cargo throughput dropped from 17.2 per cent to 15.2 per cent during the year.
“For 2024 fiscal year, the target stands at 5.079 trillion and this consists of 3.423 trn in federation accounts, N554.35 bn for non-federation accounts, and N1.101 trn for import Value Added Tax,” he added, noting that “When we compare what was targeted in 2023 and 2024, this year’s target is higher by N1.41 trn, or approximately 27.75 per cent over the 2023 budget.”
Adeniyi, therefore, expressed optimism that the 2024 fiscal policy measure would be rolled out in good time so that it would help the implementation while
national single window project would be realised, thereby enabling the Service to meet the revenue target.
“The third driver is the introduction of the Vehicle Registration System and the Vehicle Identification Number valuation application, which has a huge potential for reducing undervaluation and vehicle tax evasion, thereby improving our revenue collection.
“We hope to start the implementation of drawing from the 4 per cent Free On Board in 2024 and from this source, we expect an inflow of N623.83bn. From 2% VAT share for NCS, we project N22.02bn. The last is funds that we are rolling over from ongoing capital projects, amounting to a total of N60.58bn. This will give us a total of N706.43bn,” he added.
In his remarks, the House Committee chairman, Hon. Leke Abejide, pledged the willingness of lawmakers to support the Customs Service in achieving its revenue target for the nation.
Abejide urged the NCS Comptroller General to prioritise e-Customs initiative and the integration of Artificial Intelligence (AI) in manning Nigeria’s border stations.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
