Customs CG Blames Revenue Shrinkage on 2023 Elections, Naira Redesign, Others

The Comptroller General (CG) of Nigeria Customs Service (NCS), Bashir Adeniyi has blamed revenue shrinkage on cash crunch, naira redesign and the cumulative effects of 2023 being an election year, among other factors.

Adeniyi made this known yesterday in Abuja during the interactive session with the House of Representatives Committee on Customs and Excise on the review of the Service's 2023 budget performance and its 2024 proposed budget.

Adeniyi noted that the revenue projection was N3.669 trillion but the service collected N3.202 trillion from January to December 2023 which showed over N400 billion negative variance below target due to the factors listed.

He emphasised that uncertainties and anxiety towards 2023 elections and suspension of excise on single use plastics, carbonated drinks, telecommunications Value Added Tax (VAT)affected Customs revenue.

He added that other major causes were the cash crunch, currency redesign which he said also contributed a lot to revenue loss in the first half of 2023 as cargo throughput also reduced drastically in the year under review.

He said customs did its best to meet targets but was hampered by the factors which also included import duty exemption.

Earlier, the Chairman of the Committee, Hon. Leke Abejide said over the four budget cycle, the committee has witnessed the emphasis placed on e-customs for trade facilitation and other economic contributions of the process.

He stressed that the impact of ecustoms cannot be overemphasised, adding that its understanding would make more technologically advanced customs.

He noted that budget framework must align with the main objective of a reformed customs that will go with the time and deliver it's mandate.