Customs Laments As Exchange Rate Fluctuations Slow Import Transactions

The Nigeria Customs Service (NCS) has said it faced several challenges in the first half of 2024, including significant fluctuations in the exchange rate that slowed down transactions in the import-export segment of the nation’s economy.

The service said the lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime combined to negatively impact its activities in the first half of the year.

“These challenges impacted the consistency of revenue collection and overall operational efficiency,” spokesman for the agency, Abdullahi Maiwada said in a statement yesterday.

To address these challenges and enhance revenue collection, the NCS said it implemented several strategies, including real-time system auditing, post-clearance audits, verification of documents for the pre-arrival assessment report (PAAR), ensuring compliance with import guidelines, and the implementation of a pilot test for the authorised economic operators scheme.

The service said it is in line with a pledge to deliver a transparent and accessible system under the leadership of comptroller-general Adewale Adeniyi.

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NCS however, said it recorded a half-year revenue collection of N2.74 trillion, surpassing the target of N2.54 trillion for the period by eight per cent.

In a statement it issued on Monday, NCS claimed that N1.395 trillion was collected in the second quarter of 2024.

According to the statement, the success was enabled by new initiatives including, the e-auction platform, which it said generated over N1.34 billion, and the 90-day duty payment window for uncustomed vehicles, adding N4.37 billion to the revenue. “These measures have significantly enhanced transparency, compliance, and efficiency in customs processes, underscoring the NCS’s commitment to excellence,” the statement reads in part.

The service said its anti-smuggling operations in the first half of 2024 resulted in 2,442 seizures with a duty-paid value of N25.5 billion. In the second quarter of 2024, the NCS said it made 1,334 seizures with a DPV of N17.56, representing a 121% increase over the first quarter of 2024. The top items seized include wildlife items, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects in custody.

In the first half of 2024, the service claims it processed 620,467 single goods declarations, reflecting a reduction of approximately 39% compared to the same period in 2023. The NCS said it has implemented several key initiatives to simplify and expedite customs processes. These include reinforcement of NCS automation procedures, capacity-building programs for officers, and public-private partnerships to enhance customs clearance efficiency. These efforts are crucial for enhancing Nigeria’s trade competitiveness and supporting economic growth.

NCS recently introduced the Advance Ruling System (ARS), a legally binding decision on classification, valuation, and rules of origin before the importation or exportation of goods. Other measures implemented to increase revenue, despite a drop in cargo throughput, included establishing a robust framework for dispute resolution, launching Operation Whirlwind, reshuffling strategic-level officers and robust stakeholders’ engagement.