Adeniyi: We’ll Drive More Efficient, Transparent Revenue-optimised Operations in 2024
The Comptroller-General of Customs (CGC), Mr. Bashir Adeniyi, has said stakeholders’ engagement will define the Nigeria Customs Service (NCS)’ revenue drive towards a more efficient, transparent, and revenue- optimised operation for the benefit of the country this year.
He also said the NCS will maintain a zero-tolerance stance towards indiscipline and noncompliance in the year 2024, warning all officers and stakeholders to adhere strictly to established procedures and regulations.
The CGC further emphasised that the success of customs revenue drive depended on collective efforts, discipline and commitment of stakeholders, pointing out that maximum cooperation was expected from all.
Notwithstanding the operational challenges the service encountered in 2023 due partly to government’s policy changes, the NCS managed to generate a whopping N3.20 trillion for the year, a record that is unprecedented in the history of the service.
Adeniyi has been commended for the frenetic and innovative strategies he employed to cause a major rebound in customs revenue collection which had witnessed a decline before his assumption of office.
The year was marked by operational challenges including lower transaction volumes, compliance issues, inadequate infrastructure, and capacity gaps – compounded by delays in policy implementation and socio-political factors.
Also, the anxiety associated with a major election year, prolonged cash crunch linked with the Naira redesign programme of the Central Bank of Nigeria (CBN) which temporarily impacted purchasing power and economic activities, further hampered revenue the service’s revenue prospects.
Specifically, the transition of power to the President Bola Tinubu-led administration which brought about a new policy direction, including the removal of fuel subsidy, the floating of the exchange rate, and the closure of the country’s Northern borders with Niger Republic, all made the operating environment difficult for the service.
This expectedly led to a revenue shortfall of N532 billion compared to the N1.84 trillion target in the first half of 2023.
Adeniyi, who took over the helm of affairs of the customs in July 2023 in acting capacity was eventually confirmed as the substantive CGC in October.
Following his appointment and his merit-based reconstitution of the customs management team, they downward trajectory of customs revenue collection was quickly reversed, leading effectively to a significant shift that enabled the service to exceed monthly revenue targets by 6.71 per cent for the first-time last year.
Specifically, his efforts led to a 21.4 per cent increase in revenue performance compared to N2.64 trillion recorded in the preceding year, but fell short of the N3.68 trillion target for the year by N478 billion in the review period.
The performance was, nonetheless considered satisfactory in view of the challenging operating environment the service found itself.
Adeniyi, said the consecutive expansion in revenue underscores the service’s sustained efforts in optimising collection for the federal government, noting that the growth aligned with its consistent upward trajectory as evidenced by a 17.88 per cent revenue increase in 2022.
Adeniyi pointed out that the improved revenue collection in the second half of 2023 played a crucial role in significantly reducing the revenue deficit by 10 per cent from N532 billion to N478 billion by year-end.
According to him, monthly revenue collection for the latter half of the year averaged N332.9 billion, a substantial increase from the initial N201.7 billion recorded in H1 2023.
On assumption of office, the CGC effected an immediate establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, as well as streamlined enforcement under the Federal Operations Unit (FOU).
He said improved revenue collection in the second half of the year played a crucial role in significantly reducing the revenue shortfall by 10 per cent from N532 billion to N478 billion by year-end.
According to him, monthly revenue collection for the latter half of the year averaged N332.9 billion, a substantial increase from the initial N201.7 billion recorded in H1 2023.
He specifically attributed the positive trend to strategic measures, including the immediate establishment of a Revenue Review Recovery Team and the dissolution of existing Strike Force Teams, and streamlining enforcement under the Federal Operations Unit (FOU).
Other notable policy changes included the strategic reassignments of Customs Area Controllers, the creation
of an ideas bank, and extensive stakeholder engagements – all of which collectively contributed to the impressive rebound in customs revenue generation last year.
Obviously, the NCS would have surpassed its revenue target for the review period but for the huge revenue that was lost to waivers and concessions on goods.
In 2023, the federal government approved concessions worth N2 trillion, incorporating select dutiable items under the new tariff heading Chapter 99.
The deficit in revenue collection was partly attributed to the deliberate government initiatives and incentives designed to foster the growth of various sectors within the economy.
Nevertheless, Adeniyi said, “It is regrettable that our understanding of these waivers is only limited to the figures but there are benefits that we can have.
“But the concerns that customs have is that the environment under which we operate these waivers and concessions must be transparent.