2024: Another Race for Customs Revenue Target Begins…
WALE ADENIYI
By Francis Ugwoke
Nigeria’s economy is currently at crossroads. With huge debt profile left by the past administration, the new government of President Ahmed Bola Tinubu ordinarily may not have been comfortable seeking fresh foreign loans, but it has no choice. This is for obvious reasons. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun , had himself said that Nigeria can no longer rely on external loans to fund national budgets. He gave reasons for this. According to him, foreign countries have increased the interest rates of lending in order to check inflation in their own economies. Edu further explained, “Clearly the environment that we have now, internationally as well as nationally we are in no position to rely on borrowing.
“We have an existing borrowing profile. Our direction of tariff is to reduce the quantum of borrowing or intercepting deficit financing in the 2024 budget.
“Simply put, internationally there is a focus among rich countries on bringing down the inflation rate to stabilise the economies and give them opportunity for investment growth”. Despite these words from the Minister, the National Assembly was reported to have approved the request by the government to borrow $ 7.8 billion and €100 million in what was explained as part of the 2022 – 2024 borrowing plan started by the past administration. President Tinubu had explained that the foreign loan is needed to “bridge the gap and return the economic activities to normalcy”.
However, the Coordinating Minister made it clear that the only way is to do everything to generate adequate revenues to be able to reduce deficit budget financing. In this case, all eyes are on the revenue generating agencies.
While signing the 2024 budget, Tinubu had said that “All MDA’s have been directed to take responsibility and provide monthly Budget Performance Reports to the Ministry of Budget and Economic Planning, which in turn shall ensure the veracity of such. The Co-ordinating Minister of the Economy shall hold regular reviews with the Economic Management Team and, in addition, I shall Chair periodic Economic Coordination Council meetings.” This statement from the President reinforces the seriousness which the government attaches to revenue generation from various sectors of the economy.
For every revenue generating agency, this is a big task. And for the Nigeria Customs Service (NCS) which falls under the Ministry of Finance as a parastatal, it is indeed more work to do. And this is because the general economic trend, particularly the foreign exchange regime has in the past few years impacted negatively on trade. Although, the Central Bank of Nigeria (CBN) few months ago removed restrictions on the 43 items list, sourcing foreign exchange for the items has not been easy all the same for importers. When there is flow in trade, it automatically leads to more revenue, notwithstanding the impact on foreign exchange.
Expectations from Customs
On assuming office last year, the Comptroller General of the Customs, Bashir Adewale Adeniyi, expressed his commitment to ensure that the revenue profile of the Service will more than improve. To a large extent, he appears to have lived up to his promise. The various Commands have since posted high revenue even from areas earlier considered as dry. This is considered as a result of the understanding of the body language of the CG. Adeniyi had in his acceptance speech as the new CG, promised to prioritize efficiency in service delivery as the bedrock of trade facilitation and revenue generation. He said, “we shall dismantle obstacles and foster a new culture of consultations and compliance.
“ Over the past eight years, the Nigeria Customs Service has embarked on a journey of transformation, focused on reforms, restructuring, and revenue generation. We have witnessed critical adjustments to meet the evolving needs and strategic objectives of our Service. As beneficiaries and ambassadors of these reforms, many of us have played pivotal roles in training, retraining, and mentoring the future generation of Customs officers.
“ We stand at the precipice of an exciting future, one that builds upon the achievements of the past and takes us even further. Our administration is committed to adopting a bottom-up approach, where the needs of our dear nation take precedence over everything else. We will prioritize efficiency in service delivery as the bedrock of trade facilitation and revenue generation. No longer shall encumbrances impede trade; we shall dismantle obstacles and foster a new culture of consultations and compliance”.
Since his assumption of office, true to his words, Adeniyi has been able to strategize on improving on revenue generation as well as checking issues of smuggling. This is shown by the revenue generations announced at the end of December 2023. The Service collected N3.2trillion for last year.
Adeniyi explained that the total revenue collection of NGN 3,206,603,417,315.47, was noteworthy as it was 21.4% increase from the preceding year’s (2022) total revenue of NGN 2,641,616,673,501.83.
According to him, the growth aligns with the NCS’s “consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022”.
According to him, “The consecutive expansion in revenue underscores the Service’s sustained efforts in optimizing revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions.
“This achievement is particularly remarkable given the challenges within the operational environment. Operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delays in policy implementation and socio-political factors”.
Strategies by Commands
To be able to meet revenue targets, the Controllers manning different Commands had to introduce strategies. Apapa Customs Controller, Comptroller Babajide Jaiyeoba whose command disclosed that he had to set his own target of N1.5trn as against N1.426 trillion set for the Command by the Headquarters.
The Area Command has given itself a revenue target of N1.8trn for the 2024 fiscal year after collecting a total revenue of N1.172 trillion last year.
To meet targets, the Controller said he had to hold regular meetings with importers and customs agents to stress on the need for them to make honest declarations as part of the efforts to ensure high revenue yield.
He also said the Command had to introduce measures to check trade malpractices, adding that importers and customs agents have been complying with these measures, a development that may have helped in improving revenue.
He said, “Every additional day in the clearing process attracts money. We are in for total trade facilitation. Trading itself is about money, the earlier you clear your goods the better for traders”.
Similarly, the Controller of the Tin Can Island Port Controller, Compt. Dera Nnadi said his Command upgraded its revenue collection efforts in a bid to meet the N801bn target for last year. The Command collected N716bn last year and set a target of NN1.1trillion for 2024.
Nnadi had last year said that knowing that one of the key performance indicators for any Customs Command is revenue collection, he had to mobilize his officers to do their best in meeting the required target. According to him, this was significant considering that the present government needs all the money that can be generated to run the national economy
Nnadi added that considering that his command is second to the largest revenue generating command, he saw it as a very big challenge to upgrade the revenue collection effort.
Like the Apapa Customs Command, he said that part of the strategies he adopted on assuming office sometime in September last year was to raise the daily target of N3.3bn to N5.2bn.
He said, “Before our daily target was N3.3bn. When I assumed office, I increased it to N5.2bn
“They say if you want to aim at the top of the tree, aim at the moon so that if you don’t get to the moon, you end up at the top of the tree. We try to get that’.
Describing this as a big challenge since the cargo throughput dropped, he said that the Command was able to meet the N5.2bn target. At other times, the Command realized “over N4bn, N4.5bn, at other times going back to N2.7bn, N7.6bn and over N9bn.
This year, the Command has planned to double its efforts as far as revenue generation is concerned. At a news briefing, the Controller expressed optimism of meeting up with the new revenue target.
Nnadi maintained that this will mean generating about N94.2bn every month.
On the performance last year, he disclosed that the Command had embarked on capacity building for officers as well as the stakeholders to be able to achieve desired target.
The deployment of ICT, he disclosed, was very useful as it optimized efficiency in the performance of the Command.
While noting the year 2024 as one for the stakeholders in apparent recognition of their roles in revenue generation, Nnadi, however, warned that the Service will not fail to deal with those who chose to go against trade regulations.
Other Commands in different seaports, airports also introduced strategic measures to be able to improve on their revenue records.
2024 Revenue Target
For this year, the Comptroller-General, Adeniyi, promised to adapt to emerging challenges, foster collaborations, and uphold its commitment to integrity and administrative procedures.
In view of this, he set a revenue target of NGN 5.079 trillion for the fiscal year 2024.
In doing this, he invited all stakeholders to actively participate in this collective journey towards a more efficient, transparent, and revenue optimized customs operation for the benefit of the nation.
He said, “ In the face of these goals, I must emphasize that the NCS will maintain a zero-tolerance stance towards indiscipline and non-compliance in the year 2024. It is imperative for all officers and stakeholders to adhere strictly to established procedures and regulations.
“Maximum cooperation is expected from every stakeholder in the customs operations. The success of our collective efforts depends on the discipline and commitment of each member.
“Let this be a year where every action is aligned with the principles of efficiency, transparency, and revenue optimization with the overall aim of contributing meaningfully to the economic prosperity of our nation”.
To ensure bumper revenue generation this year and address issues of trade fraud, the CGC, before the end of 2023 introduced some measures. That was when the Customs announced planned acquisition of two more vessels for anti-smuggling operations. The vessels are coming from Singapoore, according to the Area Controller of the Western Marine Command, Comptroller Salefu, who said approval has been given by the CGC. He also disclosed that the two vessels that have remained idle in the Lagos marina will soon become operational.
To ensure that there are no revenue leakages, the Customs, among others, announced a groundbreaking partnership with the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). The partnership is to improve revenue generation and check persistent issue of leakages.
The Service believes that the partnership with RMAFC promotes fortification of the nation’s finances and mitigating revenue losses in a bid to bolster Nigeria’s economic resilience.
During a thank-you visit to the Vice President of the Federal Republic of Nigeria, Senator Kashim Shettima at the State House for being part of the 2023 CGC Conference held in Lagos, Adeniyi solicited his support for the NCS mandate of achieving the revenue target this year. In effect, the race for the 2024 revenue has started. It is strongly believed that the zeal with which the Customs pursues the revenue target would mean a big boost to the national economy. Observers equally believe that it will also be a big blow to international traders considering the possible coercion by commands to meet revenue targets. The resultant effect may no doubt play back on the general economy as importers will struggle to regain every cost suffered in many ways to get the goods to the market. This may explain why there is price increase daily on different goods in the market. The fear is that as the cliché goes as it applies to Nigeria, no one eats his/her cake and still have it.
Nigeria’s economy is currently at crossroads. With huge debt profile left by the past administration, the new government of President Ahmed Bola Tinubu ordinarily may not have been comfortable seeking fresh foreign loans, but it has no choice. This is for obvious reasons. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun , had himself said that Nigeria can no longer rely on external loans to fund national budgets. He gave reasons for this. According to him, foreign countries have increased the interest rates of lending in order to check inflation in their own economies. Edu further explained, “Clearly the environment that we have now, internationally as well as nationally we are in no position to rely on borrowing.
“We have an existing borrowing profile. Our direction of tariff is to reduce the quantum of borrowing or intercepting deficit financing in the 2024 budget.
“Simply put, internationally there is a focus among rich countries on bringing down the inflation rate to stabilise the economies and give them opportunity for investment growth”. Despite these words from the Minister, the National Assembly was reported to have approved the request by the government to borrow $ 7.8 billion and €100 million in what was explained as part of the 2022 – 2024 borrowing plan started by the past administration. President Tinubu had explained that the foreign loan is needed to “bridge the gap and return the economic activities to normalcy”.
However, the Coordinating Minister made it clear that the only way is to do everything to generate adequate revenues to be able to reduce deficit budget financing. In this case, all eyes are on the revenue generating agencies.
While signing the 2024 budget, Tinubu had said that “All MDA’s have been directed to take responsibility and provide monthly Budget Performance Reports to the Ministry of Budget and Economic Planning, which in turn shall ensure the veracity of such. The Co-ordinating Minister of the Economy shall hold regular reviews with the Economic Management Team and, in addition, I shall Chair periodic Economic Coordination Council meetings.” This statement from the President reinforces the seriousness which the government attaches to revenue generation from various sectors of the economy.
For every revenue generating agency, this is a big task. And for the Nigeria Customs Service (NCS) which falls under the Ministry of Finance as a parastatal, it is indeed more work to do. And this is because the general economic trend, particularly the foreign exchange regime has in the past few years impacted negatively on trade. Although, the Central Bank of Nigeria (CBN) few months ago removed restrictions on the 43 items list, sourcing foreign exchange for the items has not been easy all the same for importers. When there is flow in trade, it automatically leads to more revenue, notwithstanding the impact on foreign exchange.
Expectations from Customs
On assuming office last year, the Comptroller General of the Customs, Bashir Adewale Adeniyi, expressed his commitment to ensure that the revenue profile of the Service will more than improve. To a large extent, he appears to have lived up to his promise. The various Commands have since posted high revenue even from areas earlier considered as dry. This is considered as a result of the understanding of the body language of the CG. Adeniyi had in his acceptance speech as the new CG, promised to prioritize efficiency in service delivery as the bedrock of trade facilitation and revenue generation. He said, “we shall dismantle obstacles and foster a new culture of consultations and compliance.
“ Over the past eight years, the Nigeria Customs Service has embarked on a journey of transformation, focused on reforms, restructuring, and revenue generation. We have witnessed critical adjustments to meet the evolving needs and strategic objectives of our Service. As beneficiaries and ambassadors of these reforms, many of us have played pivotal roles in training, retraining, and mentoring the future generation of Customs officers.
“ We stand at the precipice of an exciting future, one that builds upon the achievements of the past and takes us even further. Our administration is committed to adopting a bottom-up approach, where the needs of our dear nation take precedence over everything else. We will prioritize efficiency in service delivery as the bedrock of trade facilitation and revenue generation. No longer shall encumbrances impede trade; we shall dismantle obstacles and foster a new culture of consultations and compliance”.
Since his assumption of office, true to his words, Adeniyi has been able to strategize on improving on revenue generation as well as checking issues of smuggling. This is shown by the revenue generations announced at the end of December 2023. The Service collected N3.2trillion for last year.
Adeniyi explained that the total revenue collection of NGN 3,206,603,417,315.47, was noteworthy as it was 21.4% increase from the preceding year’s (2022) total revenue of NGN 2,641,616,673,501.83.
According to him, the growth aligns with the NCS’s “consistent upward trajectory, as evidenced by a 17.88% revenue increase in 2022”.
According to him, “The consecutive expansion in revenue underscores the Service’s sustained efforts in optimizing revenue collection for the Federal Government and exemplifies our ability to adapt to dynamic economic conditions.
“This achievement is particularly remarkable given the challenges within the operational environment. Operational challenges such as lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps were compounded by delays in policy implementation and socio-political factors”.
Strategies by Commands
To be able to meet revenue targets, the Controllers manning different Commands had to introduce strategies. Apapa Customs Controller, Comptroller Babajide Jaiyeoba whose command disclosed that he had to set his own target of N1.5trn as against N1.426 trillion set for the Command by the Headquarters.
The Area Command has given itself a revenue target of N1.8trn for the 2024 fiscal year after collecting a total revenue of N1.172 trillion last year.
To meet targets, the Controller said he had to hold regular meetings with importers and customs agents to stress on the need for them to make honest declarations as part of the efforts to ensure high revenue yield.
He also said the Command had to introduce measures to check trade malpractices, adding that importers and customs agents have been complying with these measures, a development that may have helped in improving revenue.
He said, “Every additional day in the clearing process attracts money. We are in for total trade facilitation. Trading itself is about money, the earlier you clear your goods the better for traders”.
Similarly, the Controller of the Tin Can Island Port Controller, Compt. Dera Nnadi said his Command upgraded its revenue collection efforts in a bid to meet the N801bn target for last year. The Command collected N716bn last year and set a target of NN1.1trillion for 2024.
Nnadi had last year said that knowing that one of the key performance indicators for any Customs Command is revenue collection, he had to mobilize his officers to do their best in meeting the required target. According to him, this was significant considering that the present government needs all the money that can be generated to run the national economy
Nnadi added that considering that his command is second to the largest revenue generating command, he saw it as a very big challenge to upgrade the revenue collection effort.
Like the Apapa Customs Command, he said that part of the strategies he adopted on assuming office sometime in September last year was to raise the daily target of N3.3bn to N5.2bn.
He said, “Before our daily target was N3.3bn. When I assumed office, I increased it to N5.2bn
“They say if you want to aim at the top of the tree, aim at the moon so that if you don’t get to the moon, you end up at the top of the tree. We try to get that’.
Describing this as a big challenge since the cargo throughput dropped, he said that the Command was able to meet the N5.2bn target. At other times, the Command realized “over N4bn, N4.5bn, at other times going back to N2.7bn, N7.6bn and over N9bn.
This year, the Command has planned to double its efforts as far as revenue generation is concerned. At a news briefing, the Controller expressed optimism of meeting up with the new revenue target.
Nnadi maintained that this will mean generating about N94.2bn every month.
On the performance last year, he disclosed that the Command had embarked on capacity building for officers as well as the stakeholders to be able to achieve desired target.
The deployment of ICT, he disclosed, was very useful as it optimized efficiency in the performance of the Command.
While noting the year 2024 as one for the stakeholders in apparent recognition of their roles in revenue generation, Nnadi, however, warned that the Service will not fail to deal with those who chose to go against trade regulations.
Other Commands in different seaports, airports also introduced strategic measures to be able to improve on their revenue records.
2024 Revenue Target
For this year, the Comptroller-General, Adeniyi, promised to adapt to emerging challenges, foster collaborations, and uphold its commitment to integrity and administrative procedures.
In view of this, he set a revenue target of NGN 5.079 trillion for the fiscal year 2024.
In doing this, he invited all stakeholders to actively participate in this collective journey towards a more efficient, transparent, and revenue optimized customs operation for the benefit of the nation.
He said, “ In the face of these goals, I must emphasize that the NCS will maintain a zero-tolerance stance towards indiscipline and non-compliance in the year 2024. It is imperative for all officers and stakeholders to adhere strictly to established procedures and regulations.
“Maximum cooperation is expected from every stakeholder in the customs operations. The success of our collective efforts depends on the discipline and commitment of each member.
“Let this be a year where every action is aligned with the principles of efficiency, transparency, and revenue optimization with the overall aim of contributing meaningfully to the economic prosperity of our nation”.
To ensure bumper revenue generation this year and address issues of trade fraud, the CGC, before the end of 2023 introduced some measures. That was when the Customs announced planned acquisition of two more vessels for anti-smuggling operations. The vessels are coming from Singapoore, according to the Area Controller of the Western Marine Command, Comptroller Salefu, who said approval has been given by the CGC. He also disclosed that the two vessels that have remained idle in the Lagos marina will soon become operational.
To ensure that there are no revenue leakages, the Customs, among others, announced a groundbreaking partnership with the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC). The partnership is to improve revenue generation and check persistent issue of leakages.
The Service believes that the partnership with RMAFC promotes fortification of the nation’s finances and mitigating revenue losses in a bid to bolster Nigeria’s economic resilience.
During a thank-you visit to the Vice President of the Federal Republic of Nigeria, Senator Kashim Shettima at the State House for being part of the 2023 CGC Conference held in Lagos, Adeniyi solicited his support for the NCS mandate of achieving the revenue target this year. In effect, the race for the 2024 revenue has started. It is strongly believed that the zeal with which the Customs pursues the revenue target would mean a big boost to the national economy. Observers equally believe that it will also be a big blow to international traders considering the possible coercion by commands to meet revenue targets. The resultant effect may no doubt play back on the general economy as importers will struggle to regain every cost suffered in many ways to get the goods to the market. This may explain why there is price increase daily on different goods in the market. The fear is that as the cliché goes as it applies to Nigeria, no one eats his/her cake and still have it.
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