CGC Adewale Adeniyi Makes Impressive Revenue Growth Of N3.2trn In 2023

By Asuquo Nuwak

CGC Adewale Adeniyi Makes Impressive Revenue Growth Of N3.2trn In 2023

—Sets N5trn target for 2024

The Nigeria Customs Service (NCS) under the leadership of Comptroller-General CGC Bashir Adewale Adeniyi, MFR generated an unprecedented ₦3.2 trillion as revenue in 2023, showcasing a 21.4% surge from the previous year. Despite challenges, including a ₦532 billion shortfall in the first half of the year, strategic measures led to a remarkable recovery.

During press briefing at Customs Headquarters, Abuja, the Comptroller-General of Customs, Adewale Adeniyi, disclosed the impressive revenue growth made by Nigeria Customs Service in 2023. The revenue of ₦3,206,603,417,315.47 marked a significant increase of 21.4% from 2022, aligning with the Service’s consistent upward trajectory, evidenced by a 17.88% revenue increase in the previous year.

CGC Adeniyi stated that: “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”.

He said, the first half of 2023 faced challenges such as lower transaction volumes, compliance issues, and delays in policy implementation. The anxiety associated with a major election year and the transition to the President Tinubu-led Administration introduced further complexities. Despite a ₦532 billion revenue shortfall, a positive transformation occurred in the later part of the year, following Adeniyi’s appointment in July.

He noted that the strategic measures, including the establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, contributed to exceeding monthly revenue targets by 6.71% in the latter half of 2023. Monthly revenue collection averaged NGN 332.9 billion, a substantial increase from the initial NGN 201.7 billion recorded in the first half of the year.

CGC Adeniyi explained that: “The improved revenue collection played a crucial role in significantly reducing the revenue shortfall by 10%, decreasing from ₦532 billion to ₦478 billion by year-end”.

Moreover, the deficit in NCS revenue collection was attributed to deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy. The government approved a concession of NGN 2 trillion, resulting in the exemption of duty payments on certain dutiable goods, previously falling within a duty range of 5% to 10%. This policy shift aimed to stimulate development across diverse economic sectors and bolster the nation’s overall peace and security.

He said the NCS has sustained its vigorous campaign against smuggling and illicit trade, resulting in 3,806 seizures with a Duty Paid Value totaling NGN 16,049,023,262. The confiscations encompassed a diverse array of contraband, including Arms and Ammunition, Artifacts and Antiquities, illicit drugs, expired food produce, and endangered species of flora and fauna. Noteworthy is the international acknowledgment garnered for combating illicit trade in Animal/Wildlife.

Looking ahead to 2024, CGC Adeniyi outlined numerous strategic initiatives poised to positively impact the NCS’s performance. These include the introduction of the Advanced Ruling system, aligning NCS operations with global best practices, and meeting the recommendations of the World Trade Organization Trade Facilitation Agreement.

CGC Adeniyi noted that: ” The fiscal year 2024 comes with a new revenue target of ₦5.079 trillion, demonstrating the government’s confidence in the NCS’s capabilities”.

He further said that the initiatives such as the inauguration of an electronic auction (e-auction) platform, stakeholder engagements, and ongoing capacity-building initiatives are geared towards achieving this ambitious goal.

In his words: “As we advance in 2024, the NCS is committed to strategically charting its course for the future”.

The focus remains on aligning NCS activities with government policy, enhancing stakeholder engagements, and fortifying operational preparedness through technological advancements and capacity building.

CGC Adeniyi emphasized that the NCS will continue to adapt to emerging challenges, foster collaborations, and uphold its commitment to integrity and administrative procedures.

The outlined strategies, coupled with ongoing initiatives, are poised to facilitate the achievement of the newly set revenue target of NGN 5.079 trillion for the fiscal year 2024.

The Service invites 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.

“In conclusion, 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.”