The Nigeria Customs Service (NCS) has announced a remarkable achievement, surpassing its revenue target for the first half of 2024. This was detailed in a comprehensive statement released on Monday by Chief Superintendent of Customs and National Public Relations Officer, Abdullahi Maiwada. The mid-year performance report highlighted the service’s impressive revenue collection and strategic initiatives that contributed to its success.
According to the statement, the NCS had set a revenue target of ₦2.54 trillion for the first half of the year. However, the service collected ₦2.74 trillion, exceeding the target by 8 percent and marking a staggering 127 percent increase over the previous year’s revenue.
A closer look at the quarterly performance reveals that in the second quarter alone, the NCS collected ₦1.395 trillion, surpassing the quarterly target by 10 percent and representing a 131 percent increase compared to the second quarter of 2023.
Several key initiatives were instrumental in achieving this revenue milestone. One notable initiative was the e-auction platform, which generated over ₦1.34 billion.
Additionally, the 90-day duty payment window for un-customed vehicles contributed ₦4.37 billion to the revenue. These measures significantly enhanced transparency, compliance, and efficiency in customs processes, thereby boosting revenue collection.
The NCS also intensified its anti-smuggling operations in the first half of 2024, resulting in substantial achievements. From January to June, the service made 2,442 seizures with a Duty Paid Value (DPV) of ₦25.5 billion, which is 203 percent higher than the DPV of seizures in the first half of 2023.
In the second quarter alone, the NCS made 1,334 seizures with a DPV of approximately ₦17.6 billion, representing a 121 percent increase over the first quarter of 2024. The top items seized included wildlife products, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects taken into custody.
On the trade facilitation front, the NCS reported that in the first half of 2024, it processed 620,467 Single Goods Declarations (SGDs). This figure reflects 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 initiatives included reinforcing automation procedures, conducting capacity-building programs for officers, and fostering public-private partnerships to enhance customs clearance efficiency.
Despite these notable achievements, the NCS faced several challenges in the first half of 2024. Significant fluctuations in the exchange rate, a lower volume of transactions, low compliance levels among importers and exporters, and periodic system downtimes impacted the consistency of revenue collection and overall operational efficiency. To address these challenges and enhance revenue collection, the NCS implemented several strategic measures.
One such measure was the introduction of real-time system auditing and post-clearance audits. The NCS also focused on verifying documents for the Pre-Arrival Assessment Report (PAAR) to ensure compliance with import guidelines.
Additionally, the implementation of a pilot test for the Authorized Economic Operators (AEO) scheme aimed to streamline processes and enhance compliance.
Moreover, the NCS recently introduced the Advance Ruling System (ARS), which provides a legally binding decision on classification, valuation, and rules of origin before the importation or exportation of goods. This initiative is expected to provide greater clarity and predictability for traders, thereby improving compliance and facilitating trade.
To further boost revenue, despite a drop in cargo throughput, the NCS established a robust framework for dispute resolution and launched Operation Whirlwind, aimed at intensifying anti-smuggling activities.
The service also undertook a reshuffling of strategic-level officers and engaged robustly with stakeholders to ensure a collaborative approach to customs operations.
In conclusion, the Nigeria Customs Service’s performance in the first half of 2024 highlights its commitment to enhancing revenue collection and operational efficiency.
The implementation of innovative initiatives, coupled with intensified anti-smuggling operations, has resulted in significant achievements. However, the NCS acknowledges the challenges faced and continues to adopt strategic measures to overcome them. With ongoing efforts to improve transparency, compliance, and efficiency, the NCS is well-positioned to sustain its positive trajectory in the second half of the year.
