By Augustine Ehikioya
When the year 2024 started, the Nigeria Customs Service (NCS) would have been happy to achieve its revenue projection of ₦5.08 trillion by the end of December, 2024.
But what transpired in the year has made the Nigeria Customs Service remit into the Government purse an amount it has never generated in the history of the service.
It did not only beat the Service’s imagination for the year 2024, but upset many past records, with its 2024 revenue collection total of ₦6.11 trillion.
The first record the actual revenue broke was the targeted revenue for the same year 2024.
While the target was ₦5.08 trillion, the actual revenue collected was higher by ₦1.03 trillion representing a 20.2% increase above the target.
Comparing it with the preceeding year of 2023, another significant record was broken as the 2024 revenue was 90.4% more than the 2023 revenue collection, which was ₦3.21 trillion.
An elated Comptroller-General of NCS, Bashir Adewale Adeniyi, on Tuesday in Abuja reeled out the achievements at a Press Briefing On The Activities Of Nigeria Customs Service For The Year 2024. It was monitored by Security Watch Africa (SWA).
Speaking on the 2024 achievements, he said “I am pleased to announce that the Nigeria Customs Service has again recorded another unprecedented performance in revenue collection for the year 2024. The Service collected a total sum of ₦6,105,315,543,489.50 (Six Trillion, One Hundred and Five Billion, Three Hundred and Fifteen Million, Five Hundred and Forty-Three Thousand, Four Hundred and Eighty-Nine Naira, Fifty Kobo), surpassing our target of ₦5,079,069,866,085.50 by ₦1,026,245,677,404.00, representing a 20.2% increase above the target.
“This remarkable achievement represents a significant 90.4% increase from our 2023 collection of ₦3,206,583,002,675.65. The growth is historic as it marks the highest Year-on-Year increase recorded by the Service in recent times, surpassing the 52.24% growth recorded in 2022 by 38.18 percentage points.
“Additionally, the Service achieved another milestone in October 2024 by recording the highest monthly collection ever of ₦603,171,859,991.97.
“The total revenue collected for 2024 comprises three main components:
“Federation Account Collections. The sum of ₦3,657,063,981,445.42 was collected into the Federation Account, consisting of Import Duty, Excise Duty, Fees, E-Auction proceeds, and CET Levy.
“Non-Federation Account Levies. A total of ₦816,902,844,844.73 was collected as Non-Federation Account Levies.
“Value Added Tax (VAT). The Service collected ₦1,631,348,717,199.35 as VAT on imports.”
According to him, the collections were achieved despite significant concessions granted to support various sectors of the economy, totalling ₦1,682,302,648,880.67.
The concessions, he said, comprised ₦723,000,081,776.68 in import duty waivers, ₦372,649,650,951.72 in other levy concessions, and ₦586,652,916,152.27 in import VAT relief.
“These strategic concessions were granted to stimulate economic growth, support industrial development, and enhance the overall business environment in line with government policy objectives.
“Notably, the 2024 concession value represents a significant reduction from the ₦3,959,868,268,993.18 recorded in 2023.
“This reduction is a direct result of our enhanced monitoring mechanisms and strategic reforms aimed at blocking loopholes and eliminating abuses in the concession granting process, ensuring that only genuine and qualifying enterprises benefit from these incentives.
“These achievements were made possible through our continuous alignment with the policy objectives of His Excellency, President Bola Ahmed Tinubu, under the astute guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and the support of Management and the entire staff of Nigeria Customs Service.” he stated.
The NCS Boss did not fail to recall what the service generated at different times from the inception of the service in order to show that the service had never had it so good as the year 2024.
“Let me start with the earliest record of customs duties collected on merchandise and species in 1891, which according to the National Archives, stood at £516,817 (equivalent to ₦604.7 million at current exchange rates, excluding historical inflation). This marked the beginning of what we now know as Customs Revenue collection in Nigeria.
“By 1960, according to the report of the Board of Customs, the value of Customs duties recorded by the then Department of Customs and Excise had grown significantly to £55,918,367.
“Three decades later, by 1990, when the department operated under the Ministry of Internal Affairs, revenue figures had reached ₦9.2 billion, marking a significant evolution in our collection capacity.
“The Nigeria Customs Service has consistently demonstrated its capacity for growth and adaptation in revenue collection. In December 2017, we achieved a historic milestone by crossing the One Trillion Naira mark, collecting ₦1.037 trillion and exceeding our target by an impressive 34%. This achievement set the foundation for even greater milestones in subsequent years.
“The year 2022 marked another watershed moment as the Service crossed the Two Trillion Naira threshold, collecting ₦2.6 trillion. While this represented a significant increase in our collection capacity, we acknowledged the 14% shortfall from the ambitious ₦3 trillion target set by the Federal Government.
“In 2023, maintaining this upward trajectory, the Service further demonstrated its growing capacity by crossing the Three Trillion Naira mark, collecting ₦3.2 trillion. Though this fell short of our ₦3.6 trillion target by 13%, it represented a significant expansion of our revenue collection capabilities and laid the groundwork for our performance in 2024.” he said
Apart from the revenue collected in the year 2024, the Service also claimed that the trade performance data for 2024 reflected significant growth in trade value despite global economic headwinds.
It noted that the Service processed imports with a Cost, Insurance, and Freight (CIF) value of ₦60.29 trillion in 2024, representing a remarkable 117.4% increase from ₦27.74 trillion in 2023.
The NCS Boss said “This was achieved through 1,262,988 import transactions, handling a total mass of 15.35 billion kilograms.
“The higher value recorded despite an 8.2% decrease in transaction volume from the previous year’s 1,376,514 transactions indicates a shift towards higher-value goods in our import trade portfolio.
According to him, the export trade performance was also impressive, with the total CIF value rising significantly to ₦136.65 trillion in 2024 from ₦42.77 trillion in 2023, marking a 219.5% increase.
“While the number of export transactions remained relatively stable at 38,199 compared to 38,294 in 2023, we witnessed a substantial increase in export volume, processing 12.35 billion kilograms in 2024 compared to 3.70 billion kilograms in 2023.
“This 234% increase in export mass, coupled with the higher value, indicates a robust growth in our export trade and suggests increasing competitiveness of Nigerian products in the international market.
“The total trade value handled by the Service in 2024 amounted to ₦196.94 trillion, compared to ₦70.50 trillion in 2023, representing a 179.3% increase.
“This substantial growth in trade value, achieved with fewer but more valuable transactions, is evident of the increasing sophistication of Nigeria’s international trade and the effectiveness of our trade facilitation measures.” he added
The Service also highlighted enhanced operational efficiency recorded in the service in 2024 through modern procedures enabled by the new NCS Act.
The NCS Boss noted that its improved network and collaborations boosted the service’s anti-smuggling drive.
“Particularly noteworthy were the seizures of arms and ammunition, including 900 arms and 113,472 rounds of ammunition and the interception of narcotics and other illicit drugs, resulting in 105 seizures across various forms that was aided by the declaration of a state of emergency at our major entry points.
“The Service also intercepted unauthorized pharmaceutical products, with 40 seizures including 175,676 pieces and 6,271 cartons of various medicaments valued at ₦3.04 billion, protecting public health from potentially dangerous counterfeit drugs. The Service’s enforcement activities also revealed evolving patterns in environmental and wildlife crimes, with 76 seizures of animal/wildlife products valued at ₦5.93 billion.
“We also maintained vigilance over trade-sensitive goods, as evidenced by the seizure of 183,527 bags of rice. Additionally, significant seizures were made of other restricted items including 3,785 bales of textiles valued at ₦945.9 million, and various quantities of footwear, beverages, and other consumer goods, protecting local industries and supporting the government’s economic diversification agenda.
“The Service also recorded 397 seizures of vehicles valued at ₦5.64 billion, as we continue to enforce import regulations and protect government revenue.” he stated
Patriotic and honest Nigerians, no doubt, will expect the revenue generated into the government coffers, among other progress made by the service in 2024, should be put to judicious use and for the interest of majority of Nigerians in the long run.
Anything short of that will negate the successes celebrated and the records breaking by NCS in 2024.
Again, with the successes recorded in the year 2024, it can only be hoped that the service will continue with the record breaking feat in year 2025.
It will definitely have much to celebrate and roll out more drums by December 2025 if it achieves far beyond the ₦6.58 trillion revenue target set for the service for year 2025 by the Federal Government.