Nigeria Customs and its Mid-Term Scorecard in 2024 By Abdulsalam Mahmud

Nigeria Customs and its Mid-Term Scorecard in 2024 By Abdulsalam Mahmud

Here in Nigeria, it is customary for many government organisations and institutions to wait till a year elapse before taking stock of their performance, activities and programmes – all-through the year. A few of them presents the scorecard of their mid-term performance.

While the Nigeria Customs Service, NCS, is among the agencies who regularly briefs the media and general public on its annual and half-term performance, the NCS is in the rare class of institutions who provide quarterly updates on their operations.

In June, Comptroller General of Customs, Bashir Adewale Adeniyi, addressed the media on activities of the Nigeria Customs between June 2023 and June 2024. He spoke to journalists on the occasion of his first year in office.

On Monday, July 29, 2024, the agency unveiled the report of its performance in the first half of this year, highlighting its core mandates of revenue collection, trade facilitation, and societal protection.

The report underscores the Nigeria Customs’ commitment to supporting the policy direction of President Bola Tinubu’s administration, Abdullahi Maiwada, spokesperson for the agency, explained in a statement.

He said: “It equally aligns with the NCS’ pledge to deliver a transparent and accessible system under the leadership of CGC Adeniyi and his management team”. According to Maiwada, the NCS achieved remarkable success in the first half of 2024.

He said: “With a half-year revenue target of N2.54 trillion, the Service has collected N2.74 trillion, surpassing the target by 8% and marking a 127% increase over the previous year’s revenue. N1.395 trillion was collected for the second quarter, exceeding the quarterly target by 10% and representing a 131% increase over Q2 2023.

“Key initiatives contributing to this success include the e-auction platform, which generated over N1.34 billion, and the 90-day duty payment window for uncustomed vehicles, adding N4.37 billion to the revenue. These measures have significantly enhanced transparency, compliance, and efficiency in customs processes, underscoring the NCS’s commitment to excellence”.

The NCS, Maiwada further disclosed, intensified its anti-smuggling operations in the first half of 2024, resulting in notable achievements.

“From January to June 2024, the NCS made 2,442 seizures with a Duty Paid Value (DPV) of NGN 25,520,652,942.87, which is 203% higher than the DPV of seizures in the first half of 2023.

“In the second quarter of 2024, the NCS made 1,334 seizures with a DPV of NGN 17,564,384,378, representing a 121% increase over the first quarter of 2024.

“The top items seized include wildlife items, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects in custody,” he added.

As trade facilitation remains a core priority for the NCS, the Customs spokesperson revealed: “In the first half of 2024, the Service processed 620,467 Single Goods Declarations (SGDs), reflecting a reduction of approximately 39% compared to the same period in 2023.

“Despite this decline, the NCS has implemented several key initiatives to simplify and expedite customs processes. These include reinforcement of NCS automation procedures, capacity-building programs for officers, and public-private partnerships to enhance customs clearance efficiency.

“These efforts are crucial for enhancing Nigeria’s trade competitiveness and supporting economic growth”.

The achievements it recorded notwithstanding, the NCS faced several challenges in the first half of 2024. The challenges are: significant fluctuations in the exchange rate, a lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime.

“These challenges impacted the consistency of revenue collection and overall operational efficiency, said Maiwada.

He added that: “To address these challenges and enhance revenue collection, the NCS implemented several strategies, including real-time system auditing, post-clearance audits, verification of documents for the Pre-Arrival Assessment Report (PAAR), ensuring compliance with import guidelines, and the implementation of a pilot test for the Authorized Economic Operators (AEO) scheme.

“Additionally, the NCS has recently introduced the Advance Ruling System (ARS), a legally binding decision on classification, valuation, and rules of origin before the importation or exportation of goods. Other pragmatic measures implemented to increase revenue, despite a drop in cargo throughput, included establishing a robust framework for dispute resolution, launching Operation Whirlwind, reshuffling strategic-level officers and robust stakeholders’ engagement”.

The performance of the NCS, clearly was outstanding in the first part of the year. The agency, under CGC Adeniyi, must not rest on its oars amid the sterling feats recorded. Nigerians expect Customs to design more articulate policies, activities and programmes that will eliminate the activities of smugglers, shore up national revenue, and facilitate trade. Nigeria stands to gain immensely from these efforts.

*Mahmud, Deputy Editor of PRNigeria, can be reached via: [email protected].*