The Nigeria Customs Service (NCS) has announced that it exceeded its revenue target for the first half of 2024.
Despite having a revenue target of ₦2.54 trillion, it managed to generate ₦2.74 trillion, surpassing the target by 8 percent. This marks a 127 percent increase over the previous year’s revenue.
This was contained in a statement signed by Chief Superintendent of Customs and the National Public Relations Officer, Abdullahi Maiwada on Monday while giving the mid-year performance report of the NCS.
A breakdown of its revenue in the quarter under review showed that ₦1.395tn was collected for the second quarter, exceeding the quarterly target by 10 percent and representing a 131 percent increase over Q2 2023.
Key initiatives contributing to the success include the e-auction platform, which generated over ₦1.34bn, and the 90-day duty payment window for un-customed vehicles, adding ₦4.37bn to the revenue.
These measures it said have significantly enhanced transparency, compliance, and efficiency in customs processes.
He said the service intensified its anti-smuggling operations in the first half of 2024, resulting in notable achievements.
From January to June 2024, the NCS made 2,442 seizures with a Duty Paid Value (DPV) of ₦25.5bn, 203 percent higher than the DPV in the first half of 2023. In the second quarter of 2024, the NCS said it made 1,334 seizures with a DPV of about ₦17.6bn, representing a 121 percent 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.
On trade facilitation, the NCS said in the first half of 2024, it processed 620,467 Single Goods Declarations (SGDs), reflecting a reduction of approximately 39 percent compared to the same period in 2023.
Despite this decline, the NCS 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.
It said, “Despite the achievements, the NCS faced several challenges in the first half of 2024, including significant fluctuations in the exchange rate, a lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime.”
The challenges, it said, impacted the consistency of revenue collection and overall operational efficiency.
To address the challenges and enhance revenue collection, the NCS aid 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 Authorized Economic Operators (AEO) scheme.
Additionally, the NCS said it 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 pragmatic 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.
Author
