The Nigeria Customs Service (NCS) has expressed its commitment to meeting its revenue target of N5.08 trillion for the 2024 fiscal year. This announcement was made by the Comptroller General of Customs, Bashir Adeniyi, during his appearance before the House of Representatives Committee on Customs and Excise in Abuja.
While the NCS generated N3.21 trillion in revenue in the preceding year of 2023, falling short of its target of N3.67 trillion, Adeniyi assured the committee that the Service would meet its revenue target for the current year. He attributed the factors that hindered the NCS from reaching its 2023 target to the importation of goods under the common external tariff, import duty exemption certificates, uncertainties, and anxieties.
Adeniyi highlighted that the importation of goods under Chapter 99 of the common external tariff resulted in a revenue loss of over N2 trillion, accounting for 63.35% of the total revenue collected in 2023. Additionally, revenue due to import duty exemption certificates and other statutory provisions amounted to around N1.8 trillion, which constituted 58.52% of the total revenue generated. Furthermore, cargo throughput dropped from 17.2% to 15.2% during the year.
For the 2024 fiscal year, the revenue target stands at N5.079 trillion, comprising N3.423 trillion for the federation accounts, N554.35 billion for non-federation accounts, and N1.101 trillion for import Value Added Tax. Adeniyi expressed optimism that the fiscal policy measures for 2024 would be rolled out in a timely manner, facilitating the implementation of the national single window project and enabling the NCS to meet its revenue target.
The implementation of the Vehicle Registration System and the Vehicle Identification Number valuation application was identified as a significant driver for reducing undervaluation and vehicle tax evasion, thereby improving revenue collection. Adeniyi also mentioned other sources of revenue, such as the 4% Free On Board, 2% VAT share for NCS, and funds from ongoing capital projects, which would contribute to achieving the revenue target.
During the committee hearing, the chairman, Hon. Leke Abejide, pledged the lawmakers’ support in assisting the NCS in achieving its revenue target. He urged the NCS Comptroller General to prioritize the e-Customs initiative and the integration of Artificial Intelligence (AI) in monitoring Nigeria’s border stations.
In conclusion, the Nigeria Customs Service is determined to meet its revenue target of N5.08 trillion for the 2024 fiscal year. Despite falling short of its 2023 target, the Service remains optimistic and is implementing various strategies to improve revenue collection. With support from lawmakers and the adoption of innovative technologies, such as the Vehicle Registration System and AI integration, the NCS aims to enhance efficiency and achieve its revenue goals.
